The Central Electricity Regulatory Commission (CERC) has issued new regulations governing the application, grant, and terms of transmission licenses. These regulations were published on June 14, 2024
Only entities selected through competitive bidding or chosen by the government for specific projects can apply for a license for inter-state transmission of electricity. Distribution licensees and bulk consumers developing dedicated lines are exempt from seeking such licences.
Application Process
Applications shall be submitted electronically and require publication of a public notice for comments. The Central Transmission Utility (CTUIL) provides recommendations on the application. Applicants can respond to comments and recommendations.
CERC considers all submissions before proposing to grant or reject the application. Opportunities for further public comment are provided before a final decision. Hearings may be held for the applicant, CTUIL, concerned parties, or interested individuals.
License Terms and Conditions
Licenses are valid for 25 years, with potential for renewal based on specific criteria.
Licensees are obligated to:
- Maintain sufficient insurance,
- Build and operate projects efficiently,
- Comply with relevant regulations and grid codes,
- Provide non-discriminatory access to their transmission systems,
- Pay required license fees, and
- Seek CERC approval for specific actions,
Licensees are prohibited from engaging in electricity trading.
By streamlining procedures and establishing clear expectations, these regulations are expected to facilitate the development of a robust and reliable transmission network in India.
