Power Grid Corporation of India Ltd (PGCIL) is seeking transmission licence for an interstate transmission system (ISTS) scheme that is being implemented under the regulated tariff mechanism (RTM) route. This scheme represents the unified version of two erstwhile ISTS-TBCB schemes that failed to elicit developer response, now under the RTM framework.
According to information available with tndindia.com, Central Electricity Regulatory Commission (CERC) has granted interim licence to this RTM scheme. PGCIL has been asked to issue a public notice seeking suggestions or objections regarding the proposed grant of transmission licence.
Such objections or suggestions, if any, should be submitted to CERC on or before October 9, 2025, and CERC has scheduled the hearing for final transmission licence for October 16, 2025.
The RTM project under discussion will be implemented under RTM framework by Powergrid Bhuj Transmission Ltd, a TBCB subsidiary of PGCIL. The project is termed as “Augmentation of transformation capacity at Bhuj-II PS (GIS) & Provision of ICT augmentation and bus reactor at Bhuj-II PS.”
It may be recalled that these two components were to come up as independent ISTS schemes under the TBCB framework. Bid process coordinator PFC Consulting Ltd (PFCCL) had begun the bidding process in 2024. However, despite multiple extensions in bid submission date, both the projects attracted only one bidder, thereby nullifying the bidding process. (Read tndindia.com story dated February 2025)
As these projects were critical elements in the overall transmission infrastructure being created for RE evacuation from Bhuj region in Gujarat, it was decided that these two schemes – now rolled into one – would be implemented by Powergrid Bhuj Transmission Ltd, under the RTM modality.
PFCCL had incorporated two wholly-owned subsidiaries “Bhuj II Transmission Ltd” and “Bhuj ICT Transmission Ltd” for the two components, respectively.
Following approval from National Committee on Transmission (NCT), Central Transmission Utility of India Ltd (CTUIL) approved the “Augmentation of transformation capacity at Bhuj-II PS (GIS)” project, estimated to cost Rs.428 crore, on February 24, 2025. Later, on March 18, 2025, CTUIL approved the “Provision of ICT augmentation and bus reactor at Bhuj-II PS” project that is estimated to cost Rs.587 crore.
The integrated project, estimated to cost Rs.1,015 crore, has an overall completion date of 21 months.
PBTL
Powergrid Bhuj Transmission Ltd was incorporated as “Bhuj-II Transmission Ltd” as a wholly-owned subsidiary of bid process coordinator PFCCL, on February 25, 2019, to implement an ISTS-TBCB scheme known as “Transmission system for connectivity to RE projects at Bhuj-II (2,000 MW) in Gujarat.”
PGCIL acquired the said project SPV in October 2019, through tariff-based competitive bidding, and subsequently renamed it to “Powergrid Bhuj Transmission Ltd.”
The scheme, mainly involving setting up of the Bhuj-II GIS Pooling Station, was commissioned in November 2022.
It may be noted that PBTL already has an interstate transmission licence, issued by CERC on March 3, 2020, with respect to its original TBCB project. The transmission licensee is now seeking a separate licence for the RTM project discussed in this story.
Also read: PGCIL wins SR-WR interregional scheme under TBCB
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