TNERC to rope in pvt players for intra-state transmission system
Developed through TBCB in accordance with the guidelines to be issued by the state transmission utility.
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CHENNAI: In a first, the power transmission infrastructure in the State is likely to be developed through private participation with the TNERC publishing a consultative paper for the Development of Intra-State Transmission System through Tariff Based Competitive Bidding (TBCB).
In the consultative paper, the commission has proposed to fix the threshold limit of Rs 200 crore for intra-state transmission projects.
It said that all the new and augmentation of intra-state transmission projects above the threshold limit should be developed through TBCB in accordance with the guidelines to be issued by the state transmission utility.
So far, the transmission lines and substations have been set up by the Tamil Nadu Transmission Corporation (TANTRANSCO) on a cost-plus basis under the regulated tariff mechanism.
“Transmission system shall be developed in a cost-efficient manner and there is a need to adopt best practices and ensure competition amongst the participant transmission system developer.
The competition will bring new technology/ innovation, achieve a reduction in tariff and aim to complete projects in a timely manner,” the TNERC added.
It said that in the Regulated Tariff Mechanism route, the STU has the provisions to pass the cost of escalation owning to construction delay or any other operational factors as a way of increasing tariff.
“In the TBCB route, the risk of projects such as scheduled delay, overrun cost, etc. except force majeure events, will be borne by the developers,” it said, pointing to the report by the CII saying that TBCB projects typically offer around 30 per cent lower tariffs that the regulated tariff mechanism.
The commission has sought comments and suggestions from the various stakeholders in this regard before September 20.