The Central Electricity Regulatory Commission issued an order determining annual fixed charges for Power Grid Corporation of India Limited for a transmission asset to evacuate renewable power from Solar Energy Zones in Rajasthan. The order covers Phase?II Part?A1, intended to support the evacuation of eight point one GW of solar generation. The principal work was augmentation of the Fatehgarh?II Pooling Station with a 1,500 MVA, 765/400 kV transformer and associated bays; the asset achieved commercial operation on first August 2024 and the tariff has been fixed for the 2024–29 period.

Commission records show commissioning was delayed by 790 days beyond the revised scheduled commercial operation date of third June 2022. Power Grid attributed the delay mainly to the second wave of the COVID?19 pandemic with labour shortages, demobilisation, supply chain disruptions and lockdown restrictions, and the Central Transmission Utility of India Limited (CTUIL) had sought deferral over environmental and operational concerns including the habitat of the Great Indian Bustard. After review CERC condoned 758 days, disallowed 32 days and ordered pro?rata reductions in interest during construction and incidental expenditure during construction for the disallowed period.

The project was initially estimated to cost Rs 688.8 million (mn) and the revised completion cost rose to Rs 1.0644 billion (bn), but CERC found the final expenditure remained within the approved revised cost estimate with no unapproved overrun. The increase was attributed mainly to higher market prices for substation equipment, elevated interest costs from the extended construction period and additional incidental expenses. For tariff purposes the Commission approved a capital cost of Rs 885.7 million (mn) on the commercial operation date after deductions for disallowed interest, undischarged liabilities and unapproved incidental expenditure.

CERC also approved additional capital expenditure of Rs 174.2 million (mn) during 2024–29 for balance and retention payments and deferred works within the original project scope. The tariff was computed on a prescribed 70:30 debt?to?equity ratio and the Commission reviewed working capital and initial spares in accordance with regulatory limits. Power Grid is permitted to recover the approved annual fixed charges from concerned regional distribution licensees and other beneficiaries using the transmission system to facilitate evacuation of the linked renewable projects.