INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
Transmission licence A transmission licence must be obtained under the Electricity Act from CERC for inter-state transmission systems or the relevant SERC for intra-state trans- mission systems. Applicants are required to satisfy the eligibility criteria prescribed under the applicable licensing regulations, including the requisite technical and financial capability. Statutory and environmental approvals • Forest and environmental approvals : Depending on the location of the project, transmission licensees may be required to obtain approvals for the use of forest land, protected areas and other environ- mentally sensitive locations, and tree felling. For example, where a transmission line traverses forest land, prior approval from the MoEFCC is required under the applicable forest laws. • Land access and rights of way : Where appropri- ate, the Government may, under Section 164 of the Electricity Act, confer upon a transmission licensee the powers of a Telegraph Authority to place and maintain transmission lines and associated infra- structure. In addition, where applicable, approval under Section 68 of the Electricity Act may be required for the installation of overhead transmis- sion lines. Compensation for crop loss, tree cutting and other damage is payable in accordance with the applicable legal framework. • Infrastructure crossings : Depending on the project alignment, additional approvals may be required from the National Highways Authority of India, Indi- an Railways, airport authorities, defence authorities and other utility agencies where transmission lines cross roads, railway corridors, flight paths or other public infrastructure. Construction and commissioning • Safety approval : Before energising, the installa- tion must be inspected and approved by the Chief Electrical Inspector to ensure compliance with electrical safety guidelines. • Grid integration : Developers are required to co- ordinate with the State Load Despatch Centre (SLDC) or Regional Load Despatch Centre (RLDC) for trial runs and final synchronisation into the grid.
Public Participation Applications for a transmission licence are subject to the public consultation process prescribed under the applicable licensing regulations. The applicants are required to publish notice of their application in the newspapers. Public comments/suggestions are considered before grant of transmission licence. The regulator (such as CERC/SERC) may approve or reject the application after considering the same. Further, if a transmission project traverses ecologically sensitive forest lands, it triggers environmental reviews where public consultation is mandated. Role of Regulator The role of the regulator is primarily economic and market-oriented. It determines transmission tariffs, grants licences for inter-state trading and ensures non-discriminatory open access to the transmission grid. It does not have the jurisdiction to issue envi- ronmental clearances or authorise the physical route alignment of transmission lines. Transmission Line and Associated Facilities The terms and conditions imposed under approvals vary depending on the nature of the approval and the transmission project. Such conditions include the fol- lowing: 4.3 Terms and Conditions Imposed on Approvals to Construct and Operate a • Financial : Transmission licensees are required to, inter alia, pay the prescribed licence fee and main- tain the requisite technical and financial capabil- ity. For projects developed through tariff-based competitive bidding, the project documents may additionally require achievement of financial clo- sure within the prescribed timelines, furnishing of a Contract Performance Guarantee and maintenance of the prescribed shareholding in the project spe- cial purpose vehicle for a specified period following commercial operation. • Government approvals : Transmission licensees are primarily bound to obtain all necessary consents, clearances and permits. This includes secur- ing land for substations, navigating Right of Way issues and obtaining forest, environmental and aviation approvals, as well as approvals for railway or highway crossings.
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