Tamil Nadu Electricity Regulatory Commission issued a Consultative paper on Development of Intra-State Transmission System through Tariff Based Competitive Bidding on 4th September, 2023 and invited comments from public by 20th September.

Considering the increasing importance of transmission network for grid operation and renewable integration for achieving the national target of 500 GW non-fossil fuel capacity by 2030, the consultative paper on development of InSTS through TBCB by the commission is a welcome step. The paper provides a threshold limit for TBCB and broadly talks about the TBCB framework for the state.

Our suggestions and comments on the consultation paper are attached, however important points of our submission are listed below:

1. Lowering the threshold limit to Rs. 100 crores and this can be revisited after 2-3 years.
2. TBCB threshold should be made effective from the date of notification of the order.
3. Incorporating provisions to avoid project fragmentation.
4. Establish empowered committee at state level which will assess the cost of transmission projects and decide the mode of implementation (TBCB or RTM)
5. Commission should frame a mechanism for monitoring and reporting of progress of InSTS projects (both under TBCB and regulated tariff mechanism)