Ministry of Power Notifies Key Transmission Schemes and Grid Compensation Projects Under TBCB Mode

The Central Government has officially notified two critical transmission infrastructure projects, including massive capacity augmentation at the Dharamjaigarh substation and the deployment of synchronous condensers in the Northern Region, to be executed under the Tariff Based Competitive Bidding (TBCB) framework. This development follows recommendations from the 43rd meeting of the National Committee on Transmission and mandates rigorous technical standards for Right-of-Way (RoW) optimization and grid stability.

Background

The Ministry of Power issued Notification S.O. 5792(E) in exercise of powers conferred under sub-para 3.2 of Para 3 of the Guidelines circulated under Section 63 of the Electricity Act, 2003. The notification outlines specific transmission schemes deemed essential for the national grid, marking a transition toward high-capacity transformation and dynamic compensation mechanisms. The instrument, dated October 26, 2026, identifies REC Power Development and Consultancy Limited (RECPDCL) as the Bid-Process Coordinator (BPC) for both newly sanctioned schemes, replacing or supplementing existing regional infrastructure capacities.

Stakeholders Impacted

This notification directly impacts the following entities within the Indian power sector:

REC Power Development and Consultancy Limited (RECPDCL), designated as the Bid-Process Coordinator for these projects.
Power Grid Corporation of India Limited (POWERGRID), which is required to provide space free of cost at the Dharamjaigarh substation and has provided critical technical inputs for GIS implementation.
Potential Transmission Service Providers (TSPs) participating in the TBCB process.
Korba Power Limited, as the notification includes specific infrastructure for its 1600 MW TPS connectivity.
Central Electricity Authority (CEA), whose committee reports will govern Right-of-Way (RoW) optimization and technical corridor measures.

Key Provisions

Augmentation of Transformation Capacity at Dharamjaigarh:

The first scheme involves the creation of a 400 kV Bus Section - B at the Dharamjaigarh Substation. The scope includes augmentation by 765/400 kV 3x1500 MVA Inter-Connecting Transformers (ICTs). Notably, two 765 kV ICT bays are to be implemented as outdoor GIS bays utilizing a double circuit breaker scheme, requiring approximately 1800 meters of GIS duct. The project also facilitates connectivity for the 1600 MW Thermal Power Station of Korba Power Limited through two dedicated 400 kV line bays.

Dynamic Compensation in the Northern Region Grid:

The second scheme mandates the installation of Synchronous Condensers at the 765/400/220kV Bhadla-III and Ramgarh Power Stations. Each station will receive two Synchronous Condenser units, with each unit providing dynamic support of at least 300MVAr/-200MVAr and a minimum short circuit contribution of 1200MVA at the Point of Common Coupling (PCC).

Mandatory Right-of-Way (RoW) Optimization Measures:

The notification establishes strict technological mandates for corridor management. BPCs must ensure RoW optimization as per the CEA Committee report dated September 24, 2024. This includes the mandatory use of 400 kV monopole tower structures and insulated cross-arms in urban or semi-urban areas, or where RoW issues are anticipated. Standard lattice towers are restricted to areas without such constraints.

Practical/Compliance Impact

The following procedural and technical compliance measures are now active for project implementers:

Implementation Timelines: Both projects must be completed within 30 months. For the Dharamjaigarh project, the clock starts from the date of the Special Purpose Vehicle (SPV) transfer.
Route Validation: Proposed transmission routes must be finalized only after physical survey and validation on the PM Gati Shakti portal to ensure alignment with national infrastructure planning.
Urban/Forest Standards: In forest or hilly terrains, TSPs must adopt optimization measures beyond monopoles. In urban areas, the use of monopole structures is now a mandatory requirement to minimize the land footprint.
Inter-Agency Cooperation: POWERGRID is legally bound to provide the necessary land space for the Dharamjaigarh augmentation without charging costs to the TSP.

Effective Date

The notification was issued by the Ministry of Power on October 26, 2026, and was subsequently published in the Extraordinary Gazette of India on October 27, 2026. The implementation timeframes of 30 months for the respective schemes commence as per the specific triggers mentioned in the scope (e.g., SPV transfer for Scheme 1).