Incentive For Early Commissioning CEA

CENTRAL ELECTRICITY REGULATORY COMMISSION
NEW DELHI
Petition No. 284/ADP/2015
Coram:
Shri Gireesh B.Pradhan, Chairperson
Shri A.K.Singhal, Member
Shri A.S.Bakshi, Member
Dr. M.K.Iyer, Member
Date of Hearing: 19.1.2016

Date of Order: 28.1.2016
In the matter of
Application under Section 63 of the Electricity Act, 2003 for adoption of Transmission
Charges with respect to the Transmission System being established by the
Chhattisgarh-WR Transmission Limited.
And
In the matter of
Chhattisgarh-WR Transmission Limited
Achalraj, Opp. Mayor Bungalow, Law Garden,
Ahmedabad-380 006
............ Petitioner
Vs
1. Madhya Pradesh Power Management Company Limited
Block No-11, Ground floor, Shakti Bhawan,
Vidhyut Nagar, Rampur,
Jabalpur-482 008, Madhya Pradesh
2. Chhattisgarh State Power Distribution Company Limited
P.0 Sunder Nagar, Dangania,
Raipur492 013, Chhattisgarh
3. Gujarat Urja Vikas Nigam limited
VidhyutBhawan, Race Course,
Vadodara390 007
4. Maharashtra Electricity Distribution Company Limited
Prakashgad, 4th Floor, Bandra (East),
------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015
Page 1 of 21
Mumbai-400051
5. Goa Electricity Department (ED),
Govt. of Goa,
Aquem Alto, Margao, Goa403 601
6. Electricity Department Dadar and Nagar Haveli,
66kV, AmliInd. Estate,
Silvassa396 230, Dadra Nagar Haveli
7. Electricity Department, Administration of Daman and Diu,
Plot No. 35, OIDC Complex, Near Fire Station, Somnath,
Daman396 210
8. Shri C.Gangopadhyay, Chief Executive Officer,
PFC Consulting Limited,
First Floor, UrjaNidhi,
1, Barakhamba Lane,
Connaught Place,
New Delhi-110 001
9. Chief Executive Officer, CTU Planning,
POWERGRID Corporation of India Limited,
Saudamini, Plot No.2, Sector-29,
Gurgaon-122 001
..Respondents
The following were present:

Shri Venkatesh, Advocate for the petitioner
Shri Pratyush Singh, Advocate for the petitioner
Shri M.R.Krishna Rao, ATL
Shri Jignesh Langalia, ATL
Shri Sanjay Nayak, PFFCL
Shri Kumar Ritu Raj, PFFCL
ORDER
The petitioner, Chhattisgarh WR Transmission Limited (CWTL), has filed the present
petition under Section 63 of the Electricity Act, 2003 (hereinafter referred to as the 'Act')
for adoption of transmission charges in respect of Transmission System for System
Strengthening for IPPs in Chhattisgarh and other Generation Projects in Western
Region (hereinafter referred to as 'the Project' ).
Page 2 of 21
2.
Section 63 of the Electricity Act, 2003 provides as under:

Section 63. Determination of tariff by bidding process: Notwithstanding
anything contained in section 62, the Appropriate Commission shall adopt the
tariff if such tariff has been determined through transparent process of bidding in
accordance with the guidelines issued by the Central Government.
3.
Government of India, Ministry of Power has notified the Guidelines under Section
63 of the Act vide Resolution No. 11/5/2005-PG(i) dated 17.4.2006. The salient features
of the Guidelines are discussed in brief as under:
(a)
The Guidelines are applicable for procurement of transmission services for
transmission of electricity through tariff based competitive bidding and

forselection of transmission service provider for new transmission lines and to
build, own, maintain and operate the specified transmission system elements.
(b)
For procurement of transmission services, required for inter-State
transmission, the Central Government shall notify any Central Government

Organization or any Central Public Sector Undertakings the Bid Process
Coordinator (BPC) who would be responsible for coordinating the bid process.
(c)
The BPC shall prepare the bid documentation in accordance with the
Guidelines and obtain approval of the Appropriate Commission or alternatively,

the BPC can use the standard bid documents notified by the Ministry of Power.
Approval of the Appropriate Commission would be necessary if any material
deviation is proposed to be made in the Standard Bid Documents. Intimation

Page 3 of 21
about the initiation of the bid process shall be sent by the BPC to the Appropriate
Commission.
(d)
For procurement of transmission charges under the Guidelines, the BPC
may adopt at its option either a two-stage process featuring separate Request for
Qualifications (RfQ) and Request for Proposal(RFP) or adopt a single stage two
envelope tender process combining both RFQ and RFP processes.
(e)
RfQ or combined RfQ and RfP notice shall be issued in at least two
national newspapers, website of the BPC and the appropriate Government and
preferablyin the trade magazines also to provide wide publicity. For the purpose
of issue of RfQ minimum conditions to be met by the bidder shall be specified in
RfQ notice. The bidding shall be by way of International Competitive Bidding.
(f)
Standard documentations to be provided in the RFQ stage shall include
definitions of requirements including the details of location and technical

qualifications for each component of the transmission lines, construction
milestones, and financial requirements to be met by the bidders; proposed
Transmission Service Agreement; period of validity of offer of bidder; conditions
as specified by the Appropriate Commission for being eligible to obtain
transmission licence and other technical and safety criteria to be met by the
bidder/TSP including the provisions of Indian Electricity Grid Code (Grid Code).
(g)
Standard documentations to be provided by BPC in the RFP shall include
specified target dates/months for commissioning and commercial operations and

Page 4 of 21
start of providing transmission services. TSA proposed to be entered with the

selected bidder; bid evaluation methodology to be adopted by the BPC; Discount
Factor to be used for evaluation of the bids; specification regarding the bid bond
and project completion guarantee to be furnished by the bidders, proposed
indemnification agreement between the TSP and the utilities, amount of contract
performance guarantee as percentage of the project cost; and the liquidated
damages that would apply in the case of delay in start of providing the
transmission services.
(h)
To ensure competitiveness, the minimum number of qualified bidders shall
be two. The BPC shall constitute a committee for evaluation of the bids with at
least one member from Central Electricity Authority (CEA) and the concerned
Regional Power Committees. The member from CEA shall have expertise in the
cost engineering of transmission projects. The bids shall be opened in public and
the representative of the bidders shall be allowed to remain present. The
technical bids shall be scored to ensure that only the bids that meet the minimum
technical criteria set out in the RfQ shall be considered for further evaluation on
the transmission charge bids. The transmission charge bid shall be rejected if it
contains any deviation from the tender conditions for submission of the same.
The bidder who has quoted the lowest transmission charge as per the evaluation
procedure shall be considered for the award.
(i)
The Guidelines provide for suggested time tables for the bid process. The
timeline suggested for a two stage bid process is 240 days and single stage two
Page 5 of 21
envelope bid process is 180 days. The BPC is empowered to give extended
time-frame based on the prevailing circumstances and such alterations shall not
be construed as the deviation from the Guidelines.
(j)
The selected bidder shall make an Application for grant of transmission
licence to the Appropriate Commission within ten days from the date of issue of
LoI subject to further extension of time as provided under para 2.4 of the RFP.
TheTSA shall be signed with the selected bidder in accordance with the terms
and conditions as finalized in the bid document before the RFP stage.
(k)
The BPC shall make evaluation of the bid public by indicating the terms of
the winning bid and anonymous comparison of all other bids. All contracts signed
with the successful bidder shall also be made public. The final TSA along with
the certification of BPC shall be forwarded to the Appropriate Commission for
adoption of tariff in terms of Section 63 of the Act.
4.
In the light of the above provisions of the Guidelines, we have to examine
whether the transparent process of international competitive bidding has been adopted
in the present case for arriving at the lowest levelized transmission charges and for
selection of the successful bidder.
5.
PFCCL was notified by Ministry of Power, Government of India vide its
notification No. S.O.1706 (E) dated 8.7.2014 as the Bid Process Coordinator (BPC) for
the purpose of selection of bidder as Transmission Service Provider (TSP) to establish
Transmission System Strengthening for IPPs in Chhattisgarh and other Generation
Page 6 of 21
Projects in Western Region on Build, Own, Operate and Maintain (BOOM) basis
through tariff based competitive bidding process.
6.
Chhattisgarh WR Transmission Limited was incorporated on 24.12.2014 under
the Companies Act, 2013 as a wholly owned subsidiary of PFCCL with the objective to
establish the Transmission System for Additional System Strengthening for IPPs in
Chhattisgarh and other Generation Projects in Western Region on Build, Own, Operate
and Maintain (BOOM) basis and to act as the Transmission Service Provider after being
acquired by the successful bidder. The main objectives of the petitioner company in its
Memorandum of Associations are as under:
Plan, promote and develop an integrated and efficient power transmission system
network in all its aspects including planning, investigation, research, design and
engineering, preparation of preliminary, feasibility and definite project reports,
construction, operation and maintenance of transmission lines, sub-stations, load
dispatch stations and communication facilities and appurtenant works, coordination
of integrated operation of regional and national grid system, execution of turn-key
jobs for other utilities/organizations and wheeling of power in accordance with the
policies, guidelines and objectives laid down by the Central Government from time
to time.
7.
PFCCL as the BPC prepared the bidding documents such as RfQ and RfP in
accordance with the Standard Bid Documents issued by the Ministry of Power,
Government of India. The BPC started the process of selection of TSP with the
publication of Global Invitation for Qualification on 29.12.2014 for selection of developer
on BOOM basis for the project. The notice for RfQ was published on 29.12.2014 in all
the editions of The Times of India and Financial Times (Global Editions) with the last
date of submission of response to RfQ as 27.1.2015. Intimation regarding the initiation
of the bid process was given to the Central Commission in accordance with para 4.2 of
the Guidelines vide letter dated 14.12.2014.
Page 7 of 21
8.
The key milestones in the bidding process were as under:
S No
1
2
3
4
5
6
7
8
9
9.
Events
Global Invitation for Tender
Submission of Request for Qualification (RfQ)
Issuance of Request for Proposal (RfP)
Submission of bid
Opening of non-financial bid
Opening of Financial bid
Issuance of Letter of Intent to Successful Bidder
Submission of Contract Performance Guarantee in
favour of LTTCs
Signing of Share Purchase Agreement
Date
29.12.2014
27.1.2015
13.4.2015
30.6.2015
8.7.2015
15.7.2015
28.7.2015
20.11.2015
23.11.2015
The scope of the Project as per the Request for Proposal (RfP) and the
Transmission Service Agreement is as under:

S.
No
1
i.
ii.
2
i.
Name
of
the Completion Target
Conductor per Phase
Transmission Element
400 kV Interconnection at Gwalior 765/400 kV sub-station
Gwalior 765/400 kV-Morena
30 months
Quad Moose ACSR
400 kV D/C Transmission Line
Conductor or equivalent
AAAC. Transmission line shall
have to be designed for a
maximum operating conductor
temperature of 85C for both
ACSR as well as AAAC.
Establishment of 2X315 MVA,
30 months
400/220 KV sub-station at
Morena
400 kV
-Line bays-2nos.
-ICT-2X315 MVA, 400/220kV
-ICT bays-2 nos.
-Bus Reactor: 1X125 MVAR
-Space for 400kV bays-4nos.
220 kV
-Line bays-4nos.
-ICT bays- 2nos.
-Space for 220kV bays-4 nos.
Additional evacuation line from VindhyachalIV and V STPP (3X500 MW)
Vindhyachal-IV and V
Quad Moose ACSR
STPP-Vindhyachal Pool
Conductor or equivalent AAAC.
nd
400 kV D/C (Quad) 2 line
Transmission line shall have to
be designed for a maximum
operating
conductor

Page 8 of 21

ii.
3
i.
ii.
iii.
iv.
V.
S No
1
i.
ii.
38 month
2Nos. 400kV Line bays at
Vindhyachal-V
STPP
switchyard
Additional System Strengthening Scheme for Chhattisgarh IPPs (Part-A)
Sasan UMPP-Vindhyachal
36 months
Quad Bersimis ACSR
Pooling Station 765kV S/C
line
operating conductor
1no. of 765kV line bay at
Sasan UMPP of M/s SPL,
Reliance
LILO of one circuit of
40 months
Hexa Zebra ACSR Conductor
Aurangabad-Padghe
765
or
equivalent
AAAC.
kV S/C line at Pune
operating
conductor
Raigarh (Kotra)-Champa
36 months
Quad Bersimis ACSR
nd
(Pool) 765kV 2 S/C line
Champa (Pool)36 months
nd
Dharamjaigarh 765 kV 2
operating conductor
S/C line
Conductor per Phase
Name of the Transmission
Completion Target
Element
400 kV Interconnection at Gwalior 765/400 kV sub-station
Gwalior
765/400
kV30 months
Quad Moose ACSR
Morena 400 kV D/C
Conductor or equivalent
Transmission Line
AAAC. Transmission line shall
have to be designed for a
maximum operating conductor
Establishment of 2X315
30 months
MVA, 400/220 KV substation at Morena
401 kV
-Line bays-2nos.
-ICT-2X315 MVA,
400/220kV
-ICT bays-2 nos.
-Bus Reactor: 1X125
MVAR
-Space for 400kV bays4nos.
221 kV
-Line bays-4nos.
-ICT bays- 2nos.

Page 9 of 21
2
i.
ii.
3
i.
ii.
iii.
iv.
V.
10.
-Space for 220kV bays-4

nos.
Additional evacuation line from VindhyachalIV and V STPP (3X500 MW)
Vindhyachal-IV and V
Quad Moose ACSR
STPP-Vindhyachal Pool
nd
400 kV D/C (Quad) 2 line
operating
conductor
38 month
2Nos. 400kV Line bays at
Vindhyachal-V
STPP
switchyard
Additional System Strengthening Scheme for Chhattisgarh IPPs (Part-A)
Sasan UMPP-Vindhyachal
36 months
Quad Bersimis ACSR
Pooling Station 765kV S/C
line
operating conductor
1no. of 765kV line bay at
Sasan UMPP of M/s SPL,
Reliance
LILO of one circuit of
40 months
Hexa Zebra ACSR Conductor
Aurangabad-Padghe
765
or
equivalent
AAAC.
kV S/C line at Pune
operating
conductor
Raigarh (Kotra)-Champa
36 months
Quad Bersimis ACSR
nd
(Pool) 765kV 2 S/C line
Champa (Pool)36 months
nd
Dharamjaigarh 765 kV 2
operating conductor
S/C line
The identified Long Term Transmission Customers (LTTCs) of the project are as
under:
S. No
1
2
3
4
5
6
7
Name of the Long Term Transmission Customers

Madhya Pradesh Power Trading Company Limited
Chhattisgarh State Power Distribution Company Limited
Gujarat Urja Vikas Nigam limited
Maharashtra Electricity Distribution Company Limited
Goa Power Department
Electricity Department, Dadar and Nagar Haveli
Electricity Department, Daman and Diu

Page 10 of 21
11.
As per the decision of the Empowered Committee on Transmission, the Bid
Evaluation Committee (BEC) comprising of the following was constituted:

(a) Shri Padmakumar M. Nair, Sr. Vice President and Head, SBI Capital Markets
- Chairman
(b) Shri S.P.Gupta, Chief Engineer (Procurement), M.P.Power Transmission
Company Limited
-Member
(c) Shri O.K.Yempal, Director (Operations), MSETCL, Mumbai
-Member
(d) Shri Pankaj Batra, Chief Engineer (F&CA), CEA
-Member
(e) Shri Goutam Roy, Director (SP&PA), CEA
-Member
(f) Shri Subir Mulchandani, Chairman, CWTL
Convener- Member
12.
Responses to RfQ were received from six bidders by 27.1.2015 as per details
given below:
S. No
1
2
3
4
5
6
13.
Name of Bidder
Power Grid Corporation of India Limited
L & T Infrastructure Development Projects Limited
EsselInfraprojects Limited
Sterlite Grid 3 Limited
Adani Power Limited
Kalpataru Power Transmission Limited
The responses to the RfQ were opened on 27.1.2015 in the presence of Bid
Evaluation Committee and the representatives of the bidders. Based on the evaluation
of the responses to RfQ Evaluation Committee recommended all the six bidders as
qualified at RfP stage.
14.
The following two bidders submitted RfP:

S. No
1
2
15.
Name of Bidder
Adani Power Limited
RfP (Financial) bids were opened on 15.7.2015 in the presence of Bid Evaluation
Committee and the representatives of the bidders. The levelised charges for each
bidder, as per the bid evaluation model and the methodology specified in RfP, were
Page 11 of 21
found to be in order. Based on the evaluation of the RfP, the levelised transmission
charges were worked out as under:
S. No.
1
2
16.
Name of Bidder

Adani Power Limited
Levellised
Transmission
Charges (in Indian Rupees
Million per annum)
1446.36
1324.02
Based on the evaluated levelised transmission charges, the Bid Evaluation
Committee recommended Adani Power Limited with the lowest evaluated annual
levelised transmission charges of `1324.02 million/annum as the successful bidder.
17.
Letter of Intent was issued by the BPC on 28.7.2015 to the successful bidder,
namely Adani Power Limited. In accordance with para 12.3 of the Guidelines, the BPC
has hosted on the website of PFCCL the final results of the evaluation of the bids for
selection of developer for the project.
18.
In accordance with the provisions of the bid documents and LoI issued in its
favour, the petitioner has prayed for adoption of the transmission charges for the project
which has been discovered through the process of competitive bidding.
19.
In accordance with para 2.4 of RfP, the selected bidder shall within 10 days of
issue of the Letter of Intent accomplish the following tasks:

(a) Provide Contract Performance Guarantee in favour of the LTTCs;
(b) Execute the Share Purchase Agreement

Page 12 of 21
(c) Acquire, for the acquisition price, one hundred percent equity shareholdings
of Chhattisgarh-WR Transmission Limited from PFCCL, along with all its related
assets and liabilities;
(d) Make an Application to the Central Electricity Regulatory Commission for
adoption of charges under Section 63 of the Electricity Act, 2003;
(e) execute the RFP Project Documents in required number of originals so as
toensure that one original is retained by each party to the Agreement(s).
20.
The proviso to para 2.4 of the RfP further provides that "if for any reason
attributable to the BPC, the above activities are not completed by the Selected Bidder
within the above period of ten (10) days as mentioned in this clause, such period of 10
days shall be extended, on a day for day basis till the end of the Bid validity period". LoI
has been issued to Adani Power Limited by the BPC on 28.7.2015. BPC vide letter
dated 30.11.2015, in terms of first proviso to Clause 2.4 of RfP extended the last date of
completion of various activities up to 23.11.2015. The selected bidder furnished the
Performance Guarantee to the Long Term Transmission Customers of the project for an
amount of `29,29,50,000. Accordingly, Adani Transmission Limited, the investing
affiliate of Adani Power Limited, has acquired hundred percent equity holding in the
applicant company on 23.11.2015 after execution of Share Purchase Agreement. The
TSP on behalf of the selected bidder filed the application for adoption of tariff on
26.11.2015.
21.
On receipt of the present petition, the staff of the Commission vide its letter dated
30.11.2015 directed the BPC to submit the relevant documents regarding complete
Page 13 of 21
process of competitive bidding through affidavit. The necessary details have been filed
by the BPC under affidavit dated 10.12.2015.
22.
Notices were issued to all the respondents who are the Long Term Transmission
Customers of the project. No reply has been filed the respondents. Notice was also
issued to PFCCL in its capacity as Bid Process Coordinator. PFCCL has filed the copies
of all relevant documents pertaining to the bidding process.
23.
The petition was heard on 19.1.2016. The representative of PFCCL submitted
that Adani Power Limited (APL) vide its letter dated 30.7.2015 requested PFCCL to
transfer the SPV, namely Chhattisgarh-WR Transmission Limited to and execute the
Share Purchase Agreement with its investing affiliate Adani Transmission Limited
instead of APL as per the provision of RfP. The representative of PFCCL submitted
further submitted that legal opinions were sought from the learned Attorney General of
India and M/s Link Legal-India Law Services in this regard. The representative of
PFCCL submitted that Bid Evaluation Committee in its meeting held on 17.9.2015 after
considering the opinions of the Attorney General of India and M/s Link Legal-India Law
Services and recommended that the SPV for which LoI was issued can be acquired by
the Adani Transmission Limited which is the investing affiliate of the selected bidder,
namely Adani Power Limited. Accordingly, SPV was transferred to Adani Transmission
Limited on 23.11.2015.
24.
Under the Guidelines, BPC has to certify that the tariff has been discovered
through a transparent process of bidding and the tariff discovered is in line with
Page 14 of 21
prevailing market prices. The Bid Evaluation Committee, vide para 6 and 7 of the
minutes of meeting held on 15.7.2015, has recorded as under:
6. As per the above and based on the evaluation carried out, the computed levelised
Transmission Charge of Rs. 1324.02 Million per annum is the lowest and accordingly
based on the ranking given below, Adani Power Limited is declared as the successful
bidder, and the BPC, PFC Consulting Limited, may issue the Letter of Intent (LoI) to Adani
Power Limited (L-1 Bidder).
S. No.
1
2
Name of Bidder

Adani Power Limited
Levellised
Transmission Charges
(in
Indian
Rupees
Million per annum)
1446.36
1324.02
Ranking
of
Bidders based
on Levelised
Tariffs
L-2
L-1
7.
The Bid Evaluation Committee also certifies and confirms that the Evaluation of
the Responses to RFQ and RFP Bids has been carried out in accordance with the
provisions of the Guidelines and the Standard Bid Documents (RFQ &RFP).
25.
Bid Evaluation Committee vide its certificate dated 15.7.2015 has certified as
under:
It is hereby certified that:
1. Adani Power Limited has emerged as the Successful Bidder with the lowest
levelised transmission charges of Rs. 1324.02 million per annum for the subject
project.
2. The rates quoted by the Successful Bidder Adani Power Limited are in line with the
prevalent market prices.
3. The entire bid process has been carried out in accordance with the "Tariff based
Competitive Bidding Guidelines for Transmission Service" and "Guidelines for
encouraging competition in development of the Transmission Projects" issued by
Ministry of Power, Govt. of India under Section 63 of the Electricity Act, 2003 and as
amended from time to time and the Standard Bid Documents (RfQ, RfP & TSA)
notified by Ministry of Power, Govt. of India.
26.
In the light of the discussions in the preceding paragraphs, it emerges that
selection of the successful bidder and the process of arriving at the levelised tariff of the
Page 15 of 21
project through competitive bidding has been carried out by the Bid Process
Coordinator through a transparent process in accordance with the Guidelines and
Standard Bid Documents. The Bid Evaluation Committee has certified that the process
is in conformity with the MOP Guidelines. The BPC in its certificate dated 15.7.2015 has
certified that the rates quoted by the successful bidder are in line with the prevalent
market prices. The Commission is not required to go into the cost details of the bids as
per the bidding guidelines and has to adopt the tariff if the same has been discovered in
accordance with the Guidelines. Based on the certification of the BEC, we approve and
adopt the levelised transmission charges for the project as per the Appendix to this
order. The sharing of the transmission charges by the LTTCs shall be governed by the
provisions of Central Electricity Regulatory Commission (Sharing of inter-State
Transmission Charges and Losses) Regulations, 2010 as amended from time to time.
27.
The petitioner has also prayed that the transmission system be allowed to be
treated as part of the Transmission Service Agreement approved under the Central
Electricity Regulatory Commission (Sharing of Inter-State Transmission Charges and
Losses), Regulations 2010. At the pre-bid conference, it was clarified by the BPC that
TSA signed by the parties would merge with the TSA as notified by this Commission
under Sharing Regulations. Thus, merger of the TSA signed by the parties with the TSA
notified by this Commission is a condition of the bid and binding on all concerned.
28.
The petitioner has further submitted that the Ministry of Power, Government of
India has issued Policy dated 15.7.2015 for incentivizing early commissioning of
transmission elements before Scheduled Date of Commercial Operation (SCOD) by
Page 16 of 21
way of commencement of transmission charges from actual COD before SCOD. The
petitioner has submitted that in the said Policy, it has been clarified that such incentive
shall
be
applicable
to
transmission
project(s)/elements(s)
which
are
under
implementation/ yet to be bid out under TBCB. The petitioner has submitted that it will
take steps to avail the said incentives by commissioning the transmission elements
before SCOD and has requested the Commission to take note of the said Policy and
allow recovery of transmission charges from the actual COD in accordance with the
Policy.
29.
We have noted the submission of the petitioner. The Policy for incentivizing early
commissioning of Transmission Projects issued by Ministry of Power vide its letter dated
15.7.2015 is extracted as under:
The undersigned is directed to say that the Hon`ble Minister of State (IC) for Power has
approved the Policy for incentivizing early commissioning of Transmission projects
w.e.f.12.6.2015 as given below:
1.1
For transmission system strengthening
schemes under Tariff Based
Competitive Bidding (TBCB) and also for such schemes awarded to PGCIL under
compressed time schedule on cost plus basis, the developer shall get the following
incentive for early commissioning of transmission project(s)
(i)
Entitlement of the transmission charges from the actual date of

Commercial Operation (COD) prior to the original scheduled COD.
However, the number of years of applicability of tariff would remain
unchanged i.e. for 25/35 years, as the case may be.
Note: The above incentive will be applicable for the transmission

project(s)/element(s) which are under implementation/yet to be bid out under
TBCB/yet to be assigned to CTU (PGCIL) under compressed time schedule.
Thus, the Policy provides for grant of incentive in the form of admissibility of the
transmission charges from the date of actual COD which takes place before the
scheduled COD. In our view, the above Policy needs to be read in the context of the
TSA. Commercial Operation Date has been defined in the TSA as the date as per
Page 17 of 21
Article 6.2; provided that the COD shall not be a date prior to the Scheduled COD
mentioned in the TSA, unless mutually agreed to by all parties. Scheduled COD has
been defined as under:
Scheduled COD in relation to an Element(s) shall mean the date(s) as mentioned in
Schedule 3 as against such Element(s) and in relation to the Project, shall mean the
date as mentioned in Schedule 3 as against such Project, subject to the provisions of
Article 4.4 of this Agreement, or such date as may be mutually agreed among the
Parties.
Scheduled COD has been given in Schedule 3 of the TSA with overall SCOD as
40 months from the effective date and certain elements have been pre-required for
declaring the COD. At the end of the Schedule 3, the following has been mentioned:
The payment of Transmission Charges for any Element irrespective of its successful
commissioning on or before its Scheduled COD shall only be considered after
successful commissioning of the Element(s) which are pre-required for declaring the
commercial operation of such Element as mentioned in the above table.
Article 6.2.1 of the TSA provides as under:

6.2.1 An Element of the Project shall be declared to have achieved COD seventy (72)
hours following the connection of the Element with the Interconnection Facilities or
seven (7) days after the date on which it is declared by the TSP to be ready for charging
but is not able to be charged for reasons not attributable to the TSP or seven (7) days
after the date of determent, if any, pursuant to Article 6.1.2:
Provided that the Element shall be declared to have achieved COD only after all the
Element(s), if any, which are pre-required to achieve COD as defined in Schedule 3 of
this Agreement, have been declared to have achieved their respective COD.
From the above provisions, it emerges that certain elements can be considered for
grant of transmission charges on completion of their successful commissioning on or
before its Scheduled COD only after the successful commissioning of the pre-required
elements. Therefore, the commissioning of the elements of the transmission system for
Page 18 of 21
the purpose of incentive should take into account the pre-required commissioning of the
elements as per scheduled COD. Further there may be upstream or downstream assets
which are executed by PGCIL on cost plus basis or by any other transmission licensee
through competitive bidding. Since the SCOD of the transmission elements mentioned
in Schedule 3 have been decided matching with the commissioning of the upstream or
downstream assets, that is a requirement of matching commissioning of these upstream
or downstream assets with the commissioning of the transmission system in case of
early commissioning for the purpose of availing incentives as per the Policy direction of
Ministry of Power. If the matching commissioning does not take place, then the
transmission assets which have commissioned before the SCOD for the purpose of
availing incentive will remain unutilized and in the absence of the assets being put into
service, it will not be appropriate to load the DICs with the transmission charges. It is,
therefore, directed that the petitioner should realistically forecast early commissioning of
the element, liaise with the developer of the upstream and downstream assets and
mutually decide the COD of the transmission assets matching with the COD of the
upstream or downstream assets so that both can be benefited by the Policy of the Govt.
for incentivizing the early commissioning of the transmission assets. In case of an
element which can be put to use without the commissioning of the pre-required asset,
the same can be commissioned, if the CEA certifies that the commissioning of the
asset will be in the interest of the safety and security of the grid and the asset can be
put to useful service after its commissioning.

Page 19 of 21
30.
The Petition No. 284/ADP/2015 is disposed in terms of the above. We direct that
copies of this order shall be endorsed to all Long Term Transmission Customers of the
transmission system.
Sd/(Dr. M.K.Iyer)
Member
sd/(A.S. Bakshi)
Member
sd/(A.K. Singhal)
Member
sd/(Gireesh B. Pradhan)
Chairperson

Page 20 of 21
Appendix
Year
(Term of
License)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Commencement
Date of Contract
Year
Scheduled COD
28.11.2018
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
01-April
End Date of
Contract Year
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
31-March
35th
anniversary of
the Schedule
COD
Quoted Non- Escalable

(Rs. millions)
1171.00
Quoted Escalable
(Rs. Millions)
0.00
1650.00
1650.00
1650.00
1650.00
1650.00
1650.00
1650.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
1160.00
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil
Nil

Page 21 of 21

Incentive For Early Commissioning CEA

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CENTRAL ELECTRICITY REGULATORY COMMISSION

Date of Hearing: 19.1.2016

The following were present:

Section 63 of the Electricity Act, 2003 provides as under:

The Guidelines are applicable for procurement of transmission services for

transmission of electricity through tariff based competitive bidding and

For procurement of transmission services, required for inter-State

transmission, the Central Government shall notify any Central Government

Guidelines and obtain approval of the Appropriate Commission or alternatively,

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

For procurement of transmission charges under the Guidelines, the BPC

Standard documentations to be provided in the RFQ stage shall include

definitions of requirements including the details of location and technical

Standard documentations to be provided by BPC in the RFP shall include

specified target dates/months for commissioning and commercial operations and

start of providing transmission services. TSA proposed to be entered with the

To ensure competitiveness, the minimum number of qualified bidders shall

The selected bidder shall make an Application for grant of transmission

In the light of the above provisions of the Guidelines, we have to examine

PFCCL was notified by Ministry of Power, Government of India vide its

Chhattisgarh WR Transmission Limited was incorporated on 24.12.2014 under

The key milestones in the bidding process were as under:

Transmission Service Agreement is as under:

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

temperature of 85C for both

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

-Space for 220kV bays-4

Name of the Long Term Transmission Customers

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

As per the decision of the Empowered Committee on Transmission, the Bid

Evaluation Committee (BEC) comprising of the following was constituted:

The following two bidders submitted RfP:

Sterlite Grid 3 Limited

Based on the evaluated levelised transmission charges, the Bid Evaluation

issue of the Letter of Intent accomplish the following tasks:

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

The petition was heard on 19.1.2016. The representative of PFCCL submitted

Sterlite Grid 3 Limited

In the light of the discussions in the preceding paragraphs, it emerges that

Entitlement of the transmission charges from the actual date of

Note: The above incentive will be applicable for the transmission

Article 6.2.1 of the TSA provides as under:

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

Quoted Non- Escalable

------------------------------------------------------------------------------------------------------------------------------Order in Petition No. 284/ADP/2015

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