The transmission project at Vikhroli was scrapped due to inordinate delays & lack of substantial progress since 2011
In an order, the Maharashtra Electricity Regulatory Commission (MERC) has scrapped the execution of 400 kV Vikhroli transmission project by Tata Power(Transmission) citing inordinate delays and lack of substantial progress since 2011. MERC has confirmed its order delivered in September last year rejecting TataPower Transmission's plea to complete execution. The regulator instead has directed the State Transmission Utility (STU) to submit its recommendations within a fortnight regarding the execution of the project under tariff-based competitive bidding (TBCB) route.
The regulator has further asked STU to set up a credible mechanism for continuous monitoring of the project to avoid any further delay. Timely completion of Vikhroli Transmission project is necessary for strengthening the transmission of power in Mumbai considering the rise of power demand by 100 to 125 MW annually. Implementation of this project will facilitate 800 to 1,000 MW of power import in Mumbai from the grid at 400 kV level.
The regulator observed that had the project been completed in time, the inflow of power at the competitive rate would have been possible. The scheme could have been in service of consumers without jeopardizing the power supply in the city and without a substantial increase in capital cost.
"The prevailing constraint on city's transmission corridor has lead to a financial burden on consumers by restricting the flow of cheaper power 200 MW at Rs 3.94 per unit as against BEST's existing average power purchase from Tata Power (Generation) at Rs 4.34 per unit," said the regulator.
The regulator had cleared the 400 kV receiving station at Vikhroli in June 2011 with an investment of Rs 846.19 crore and the project was to be completed by TataPower (Transmission) in the fiscal year 2015-16. The regulator's approval came after the two grid disturbances that occurred in November 2010 which had severely impacted the power supply to the Mumbai Metropolitan Region (MMR) including south Mumbai. Subsequently, the regulator had approved the revised scheme in October 2015 for the construction 400 kV multi-circuit Kharghar Vikhroli transmission line amounting to Rs 455.39 crore. The scheme was to be completed in fiscal 2018-19. Recently, Tata Power (Transmission) had revised the completion date at March 2022 for the Vikhroli receiving station and 400 kV Kharghar Vikhroli line.
"There has been an inordinate delay in execution resulting in substantial increase in cost. The commencement of the project is still uncertain as the schedule for projected completion and project cost are dependent on clearances from the union department of civil aviation, municipal corporation of Greater Mumbai and environment clearance from High Court," the regulator said in its order.
TATA'S APPEAL
400 kV Vikhroli transmission project is vital to strengthen Mumbai's power supply and requires speedy implementation. It required several approvals from various state and Central agencies, including forest, CRZ, flamingo sanctuary, aviation, to name a few. Tata Power has already invested substantial resources on the project, hassecured most of the permissions. It was awaiting permission from MERC to begin site activities. The decision to now follow TBCB process would certainly push back the timelines. In the interest of the security of Mumbai's power supply, the company proposes to appeal against MERC order.
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