After several months of consultations with stakeholders, the AP Electricity Regulatory Commission (APERC) has cleared the decks for the implementation of Intra-State Transmission Projects (ISTP) costing more than ₹250 crore (excluding the land cost) through Tariff-Based Competitive Bidding (TBCB) by issuing the requisite APERC (Threshold Limit for Development of Intra-State Transmission Projects under Tariff-Based Competitive Bidding) Regulation, 2024 a couple of days ago.
An empowered committee constituted by the Government of Andhra Pradesh (GoAP) will make recommendations thereof in compliance with the relevant guidelines notified by the Central Government from time to time.
The APERC allowed the implementation of ISTP (excluding the schemes involving upgradation/augmentation of assets) through a cost-plus approach and below the threshold limit for specific reasons through TBCB, with its approval. It considered ₹250 crore as the appropriate threshold limit keeping in view the proposed investment of ₹28,000 crore by the APTransco in its fifth and sixth control periods (FY 2024-25 to FY 2028-29 and FY 2029-30 to FY 2033-34).
The commission had issued a public notice inviting comments and objections on the above regulation (No.5/2024) last year and made an upward revision of the threshold limit from the initially proposed ₹100 crore to ₹250 crore following objections raised by multiple stakeholders.
Hitherto, the APTransco used to award ISTPs to private companies on a turnkey basis but since they can henceforth directly bid for the projects through TBCB, the stakeholders requested the APERC to assess the impact of the regulation on the grid and Transco network, and ensure proper accountability of private companies in the event of their failure to deliver their commitments.
The threshold limit for TBCB for ISTPs in eight States (Assam, Bihar, Gujarat, Haryana, Odisha, Uttarakhand, Ladakh and Uttar Pradesh) out of 14 (where the APERC conducted a study) was ₹100 crore and ₹250 crore in three States (Chhattisgarh, Madhya Pradesh and Rajasthan). It was ₹500 crore in Maharashtra, ₹50 crore in Punjab and ₹45 crore in Himachal Pradesh.
Regulation No.5/2024, which is in line with the National Electricity Policy to bring the power industry under competition in the overall interest of consumers, will be coming into force from the date of its publication in the State Gazette.
