RERC Approves INR 6,050 Crore Power Transmission Plan for Rajasthan

The Rajasthan Electricity Regulatory Commission (RERC) has approved a revised investment plan worth INR 6,050 crore for the financial year 2025–26, submitted by Rajasthan Rajya Vidyut Prasaran Nigam Ltd. (RVPN).

Initially, RVPN proposed an outlay of INR 5,700 crore, which was later revised upwards through an interlocutory application, citing new schemes announced in the state budget and additional necessary works. Of the total, INR 45 crore is earmarked for State Load Dispatch Centre (SLDC) functions, placing RVPN’s core investment at INR 6,005 crore.

The plan focuses on strengthening the transmission system, minimising losses, enhancing voltage regulation, and catering to increasing load demands across the state.

However, the approval comes with a caution. During the public consultation process, stakeholders flagged multiple issues, ranging from lack of supporting documentation for funding sources to delays in earlier projects, duplication in transformer augmentation entries, and missing load flow analyses.

One notable concern was the inordinate delay in completing key projects, including the 400 kV Suratgarh TPS–Babai transmission line, which has been pending for over a decade and has seen significant cost overruns. The Commission took a serious view of these delays and asked RVPN to clarify completion timelines and financial liabilities.

An additional INR 359 crore has been proposed for new schemes, including select projects under the Green Energy Corridor–III (GEC-III), backed by expected grants from the central government and loans from KfW, the German development bank. However, stakeholders questioned the feasibility of these funding models, demanding upfront equity and proper technical approvals.

RVPN, in response, confirmed that INR 402.54 crore in equity has already been sanctioned by the Government of Rajasthan out of the proposed INR 1,160 crore announced in the state budget on February 19, 2025. This government support lends credence to RVPN’s funding roadmap.

Despite an approved outlay of INR 2,985.26 crore in FY 2024–25, RVPN had only incurred INR 1,685.88 crore as of February 2024, excluding Interest During Construction (IDC). Deposit works worth INR 402.34 crore were also undertaken but remained outside the formal investment plan.

After reviewing RVPN’s submissions and stakeholder feedback, RERC approved the INR 6,050 crore plan while directing RVPN to improve planning, avoid cost escalations and duplications, and ensure timely project execution. The Commission emphasised the need for updated technical documents and load flow studies.

The approved investment is expected to significantly enhance Rajasthan’s transmission infrastructure, enabling efficient evacuation of both conventional and renewable energy and supporting the state’s growing power needs.