Andhra Pradesh: Threshold limit fixed for new InST projects awarded under TBCB

The threshold limit will be applicable for all new InST projects for which approval is yet to be accorded by the commission.
Image used for representational purpose only.
Image used for representational purpose only.

VIJAYAWADA: The Andhra Pradesh Electricity Regulatory Commission (APERC) has fixed the threshold limit of above Rs 250 crore, excluding land cost, for the new intra-state transmission (InST) projects to be awarded under Tariff Based Competitive Bidding (TBCB).

This is in tune with the Ministry of Power’s recommendations to the State government to adopt the TBCB for the development of InST projects and the Supreme Court directions. A gazette notification to this effect was issued on May 17. Accordingly, all new InST projects costing above Rs 250 crore formulated by STU (Transmission Utility notified by the Government of Andhra Pradesh) and approved by the APERC shall be implemented through TBCB by the bid process coordinators. This is done as per the recommendations of the empowered committee constituted by the State government, following the guidelines for competitive bidding notified by the Central Government from time to time.

The threshold limit will be applicable for all new InST projects for which approval is yet to be accorded by the commission. The entire InST projects including any upstream/downstream projects will be designed as a single project for inviting bids for the development of the projects through TBCB.

In case the STU intends to implement any InST System above the threshold limit through a cost-plus approach under Section 62 of The Electricity Act, 2003 (36 of 2003), due to some specific reasons such as the project being of a critical nature like transmission system being developed for Defence, Railways, Airport, etc., or there are issues involved in ownership or interface issues, the STU will obtain prior approval of approval for same.

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