MPERC grants in-principle approval for Rs 667 Cr Sabalgarh transmission strengthening (incl. 400kV substation) via RTM, exempting it from competitive bidding
Filing of Petition regarding approval for Transmission system strengthening works in Sabalgarh area, including construction of 400KV substation at Sabalgarh by MPPTCL through Regulated Tariff Mechanism (RTM). (Petitioner: 1) M P Power Transmission Company Limited)
MPPTCL sought approval to build transmission infrastructure in Sabalgarh/Sheopur area, including a new 400/220/132kV substation, to evacuate power from RUMSL's upcoming 600MW Morena Solar Park (Phase-1, with BESS) and relieve network constraints identified by MPSTU/CTUIL studies. As the project cost (Rs 667 Cr) exceeds the Rs 400 Cr threshold under MPERC Transmission Tariff Regulations 2024, tariff would normally require Tariff-Based Competitive Bidding (TBCB); MPPTCL instead sought exemption via Regulated Tariff Mechanism (RTM), citing strategic importance and urgency, backed by GoMP Energy Department's in-principle approval dated 28.08.2025.
- Granted in-principle approval for Sabalgarh transmission strengthening works costing Rs 667 Crore under RTM
- Approved exemption from TBCB/competitive bidding under Regulation 2 proviso, citing strategic importance and urgent situation (Morena Solar Park evacuation)
- Approval covers: new 400/220/132kV substation (Rs 305 Cr), 400kV DCDS line from Morena Pooling to Sabalgarh (Rs 292 Cr), and two 220kV LILO lines (Rs 35 Cr each)
- Rs 667 Cr approved is in addition to Rs 7668.16 Cr (Petition 8/2024) and Rs 487 Cr (Petition 18/2025) already approved for FY2024-25 to FY2028-29 MYT control period
- Approval subject to same terms and conditions as Commission's Order dated 03.09.2024 in Petition 8/2024
- Petition disposed of; no stakeholder objections received/considered as none were filed
- MPPTCL to execute Sabalgarh transmission works (substation + lines) under RTM as approved
- Evacuation system must be commissioned by December 2027 to align with Morena Solar Park commissioning
- Project cost of Rs 667 Cr to be included in ARR/Tariff/True-up for respective financial years per Regulations
- Approval subject to terms/conditions of Commission's Order dated 03.09.2024 in Petition 8/2024 (compliance monitoring implied)
- No further public consultation required as objections window (21 days) closed with nil responses
- • Faster, exemption-based (RTM) execution avoids TBCB delays, supporting timely evacuation infrastructure for the 600MW Morena Solar-BESS Park, which will feed RE supply into MP's grid via MPPMCL as sole procurer
- • C&I open-access consumers and RE developers in Morena/Sabalgarh/Sheopur region can expect improved transmission capacity and reduced congestion risk by Dec 2027, aiding future RE capacity addition/evacuation
- • Project cost (Rs 667 Cr) will flow into transmission tariff (ARR) impacting future intra-state transmission charges payable by open access/C&I consumers
- • Precedent set for exempting large strategic RE-evacuation transmission projects from competitive bidding, potentially relevant for other upcoming RE zones in MP
This is a green-light for critical evacuation infrastructure tied to a large 600MW solar-BESS park — good news for RE capacity addition and grid stability in the Morena/Sabalgarh corridor. C&I buyers eyeing open access or RE PPAs in this region should track the Dec-2027 commissioning deadline closely, as delays could recreate congestion risk. The RTM-over-TBCB exemption route (bypassing competitive bidding for cost efficiency) may modestly raise transmission tariffs versus a bid-discovered rate, but timeline certainty for RE evacuation is the bigger near-term value driver.
Growthifye does not take responsibility for the accuracy of this information. Values are compiled from tariff orders published on the websites of State Electricity Regulatory Commissions and distribution licensees (plus CEA / MoP / Grid-India), parsed automatically and shown with their source. Always verify against the signed order before any commercial decision. This one-pager is a Vidura-assisted summary of the official order; the signed order prevails.