The formal transfer of the ISTS-TBCB scheme dealing with evacuation from pumped storage projects in Sonbhadra, Uttar Pradesh, is awaiting approval from the Union power ministry.
Speaking to tndindia.com, a senior government official said the formal transfer of project SPV “Robertsganj Power Transmission Ltd” housing the interstate project “Transmission system for evacuation of power from pumped storage projects in Sonbhadra district, Uttar Pradesh” was awaiting final nod from the Union power ministry.
It may be recalled that Power Grid Corporation of India Ltd (PGCIL) was selected as the winning developer for this scheme under the tariff-based competitive bidding (TBCB) mechanism. The Central PSU got the better of seven other contenders that had qualified for opening of price bids, by its winning quote of Rs.328.40 crore being the annual transmission charges (tariff).
PGCIL was even issued the letter of intent by bid process coordinator REC Power Development & Consultancy Ltd (RECPDCL) on September 4, 2025.
Though the precise reason for the delay in the project SPV transfer is not known, it is speculated that the transmission scheme might be currently commercially unviable as pumped storage projects in Sonbhadra are facing implementation delays.
The project is supposed to cater to upcoming PSPs of Avaada Group and Greenko Group, in the Robertsganj region of Sonbhadra district. These PSPs were initially supposed to commission by November 2026 and March 2028, respectively. However, their completion dates were revised to December 2030 and June 2028, respectively, even when the bidder selection process began.
It is likely that these PSPs are likely to be delayed further, resulting in a potential review of the transmission scheme.
The project, with an estimated cost of around Rs.3,600 crore, involves putting up a 765/400kV, 4×1,500 MVA pooling station at Robertsganj, along with several supporting transmission elements.
This is first ISTS-TBCB scheme where the formal transfer of SPV has taken inordinately long. It is expected, as per the standard bidding documents, that the formal SPV transfer takes place in ten days from the issuance of the letter of intent.
In the case of Robertsganj Power Transmission Ltd, it is prudent to put the SPV transfer on hold rather than transfer the SPV and encounter delays at the time of securing transmission licence from Central Electricity Regulatory Commission (CERC).
At this juncture, it is worth observing that at least two ISTS-TBCB schemes have faced difficulty in securing transmission licence as CERC found the schemes to be commercially unviable.
Tata Power’s “TP Gopalpur Transmission Ltd” has yet to receive transmission licence though the scheme was acquired in November 2024 and is scheduled to commission by December 2027. Similarly, Adani Group’s “Mundra I Transmission Ltd,” acquired in March 2025, is awaiting transmission licence. In both the cases, CERC has raised questions on the commercial viability of the schemes.
Both the schemes relate to supply of renewable energy to upcoming green hydrogen/green ammonia plants in Odisha and Gujarat, respectively.
It may be mentioned here that prospects for TP Gopalpur receiving the transmission licence has brightened after a recent National Committee on Transmission (NCT) reiterated the scheme’s commercial viability.
At the practical level, a transmission service provider (TSP) cannot make any physical progress on the project in the absence of transmission licence. Even the first step of land acquisition cannot be undertaken as the TSP needs to liaise with government authorities, and this is impossible without having the transmission licence. In effect, a developer gets the official recognition of a “transmission service provider” only when backed by CERC’s transmission licence, in the context of interstate transmission system schemes. For intrastate schemes, the transmission licence is issued by the respective state electricity regulatory commission.