VIZAG TRANSMISSION LIMITED Vs. TAMIL NADU GENERATION AND DISTRIBUTION COMPANY LIMITED (TANGEDCO) AND ORS.

JUDGEMENT

(1.) THE petitioner, Vizag Transmission Limited has filed this petition under Section 14 read with Section 15(1) of the Electricity Act, 2003 (the Act) for grant of transmission licence to undertake the business of establishing, commissioning, operation and maintenance of the transmission systems comprising the following elements: The petitioner has submitted that Ministry of Power. Government of India initiated a scheme for development of transmission projects through private sector participation for System Strengthening in Southern Region for Import of Power from Eastern Region. The said project was to be awarded to developers selected on the basis of the tariff based competitive bidding process. The petitioner has submitted that the Central Government in exercise of the powers under Section 63 of the Act has notified the "Tariff Based Competitive Bidding Guidelines for Transmission Service" (hereinafter referred to as "the Guidelines") vide Government of India Ministry of Power Resolution No. 11/5/2005 -PG(i) dated 17.4.2006. The petitioner has further submitted that REC Transmission Projects Company Limited (hereinafter referred to as RECTPCL) was notified by Government of India Ministry of Power vide Notification No. 15/1/2011 -Trans dated 4.1.2013 as the Bid Process Coordinator (hereinafter referred to as "BPC") for the purpose of selection of bidder as Transmission Service Provider (TSP) to establish the transmission system for System Strengthening in Southern Region for import of power from Eastern Region on Build, Own, Operate and Maintain (BOOM) basis through competitive bidding in accordance with the Guidelines. The petitioner was incorporated on 30.11.2011 by RECTPCL as its wholly owned subsidiary to initiate work on the project to build, own, operate and maintain the transmission system for System Strengthening in Southern Region for import of power from Eastern Region and to act as the Transmission Service Provider (TSP) after being acquired by the successful bidder.

(2.) THE petitioner has submitted that RECTPCL in its capacity as the BPC invited bids from the prospective bidders for issue of Request for Qualification (RfQ) to qualify/shortlist the bidders for participation in the next stage of bidding i.e. Request for Proposal (RfP) as part of the process for selection of Transmission Service Provider (TSP) in accordance with the Guidelines. The bidder selected in accordance with the bidding process was required to acquire one hundred percent of equity shares in the Vizag Transmission System Limited, New Delhi and then assume the responsibility of the TSP to establish the transmission project and to provide transmission service on long -term basis to the following Long Term Transmission Customers (LTTCs) of the project, namely:

(3.) THE petitioner has submitted that 3 bidders submitted their bids at RfP stage. M/s. PricewaterhouseCoopers Pvt. Ltd. Gurgaon in consortium with Singhania and Partners, LLP, New Delhi carried out the responsiveness check of the non -financial bids in accordance with the conditions of RfP and recommended all three bids as responsive for opening of financial bids. The financial bids were opened on 24.7.2013. As per the Bid Evaluation Report dated 26.7.2013, M/s. Power Grid Corporation of India Limited emerged as the successful bidder with the lowest levelized transmission charges of Rs. 2311.34 million/annum.