Denotification of Connectivity System for Lanco Vidarbha Thermal Power Ltd and Inter State Transmission system strengthening in Chhatarpur area in Madhya Pradesh Schemes.

## Policy Analysis Report: Denotification of Transmission Schemes under Tariff Based Competitive Bidding (TBCB) **1. Executive Summary:** This report analyzes a notification from the Ministry of Power, Government of India, regarding the denotification of two transmission schemes/packages initially slated for implementation under Tariff Based Competitive Bidding (TBCB). The notification, dated August 26, 2022, and published in the Gazette of India, details the denotification of the Connectivity System for LancoVidarbha Thermal Power Ltd. (LVTPL) and the Inter-State Transmission system strengthening in the Chhatarpur area in Madhya Pradesh. The report focuses on the background, rationale, and implications of this denotification. The key finding is that previously approved infrastructure projects are now cancelled. **2. Introduction:** This report aims to provide an informative analysis of the Ministry of Power notification (S.O. 4033E), published on August 29, 2022, concerning the denotification of specific transmission schemes/packages. The analysis is based solely on the information provided within the text of the notification. **3. Policy Overview:** * **Type:** Amendment (Specifically, a denotification) * **Original Policy:** The original policy involves implementing transmission schemes/packages through Tariff Based Competitive Bidding (TBCB). It is alluded to through the gazette notifications listed for each scheme. * **Core Objective(s):** The original policy objective, as inferred from the text, was to improve power transmission infrastructure through competitive bidding. The objective of *this amendment* is to remove the obligation to implement two specific projects under that TBCB framework. **4. Background and Rationale:** The notification indicates that two previously approved transmission schemes are being denotified. The rationale for this amendment is explicitly stated: the schemes were agreed upon for denotification in the 4th meetings of the erstwhile National Committee on Transmission (NCT) held on 31.07.2019 and recommended by CEA for denotification on 03.08.2022. The text does not elaborate on the *reasons* *why* the NCT and CEA recommended denotification, leaving the underlying cause unspecified (e.g., changes in energy demand, project infeasibility, etc.) **5. Key Provisions / Changes:** This notification specifically acts as a *denotification* notice. * **Specific Part of Original Policy Being Changed:** The notification removes the requirement to implement the two listed transmission schemes (Connectivity System for LVTPL and Inter State Transmission System strengthening in Chhatarpur area) under the Tariff Based Competitive Bidding (TBCB) framework. It cancels the effect of the original notifications approving these projects. * **New Rule/Provision:** The new provision is that the specified schemes, including their scope, are *hereby denotified*. This means these projects will not proceed under the previously approved TBCB framework. * **Difference/Effect of the Change:** The effect of this change is to effectively cancel the implementation of the two identified power transmission projects under the original terms. Companies that may have been considering bidding on or participating in these projects should now be aware that they are no longer proceeding under this framework. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by this notification include: * Lanco Vidarbha Thermal Power Ltd. (LVTPL) * Companies potentially interested in bidding for the Connectivity System for LVTPL project. * Entities involved in the Inter-State Transmission system strengthening in the Chhatarpur area in Madhya Pradesh. * Power consumers in the regions that would have been served by these projects. * The Central Electricity Authority (CEA). **7. Implementation Aspects (Inferred):** * **Responsible agency/bodies:** The Ministry of Power issued the notification. The National Committee on Transmission (NCT) and the Central Electricity Authority (CEA) played a role in recommending the denotification. * **Timelines or Procedures:** The notification references meeting dates (31.07.2019 and 03.08.2022), suggesting a process of review and recommendation preceded the denotification. However, the text does not specify any further actions or timelines following the notification. * **Implementation aspects of the changes:** The denotification appears to be a final decision, effectively halting progress on the identified schemes. No further bidding or implementation activities under the TBCB framework should occur for these projects. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this denotification is likely to formally cease the projects. The impact of this decision is that the planned improvements to power transmission infrastructure in the specified areas will not occur under the previously approved TBCB framework, which may potentially affect electricity supply in the region. The cancellation will likely result in a re-evaluation of regional power infrastructure needs and alternative transmission projects. **9. Conclusion:** The Ministry of Power's notification regarding the denotification of two transmission schemes marks a significant change, cancelling projects initially intended to enhance power transmission infrastructure. This action suggests a re-evaluation of these specific projects based on recommendations from the NCT and CEA. The cancellation of the projects has direct implications for LVTPL, potential bidders, and consumers in the affected regions and may lead to a reassessment of transmission needs and alternative project proposals.

Key Entities Referenced