2024 Transmission License Regulations

The Central Electricity Regulatory Commission (CERC) has issued new regulations outlining the process for obtaining a transmission license in India. The notification was issued on May 23, 2024.


  • Only companies selected through competitive bidding or entities chosen by the government can apply for a license for interstate transmission of electricity.
  • Distribution licensees and bulk consumers developing dedicated transmission lines are exempt from needing a license.

Application Process

  • Applications must be submitted electronically to the CERC with supporting documents and fees.
  • A public notice will be published, inviting comments and objections.
  • The Central Transmission Utility (CTUIL) will provide recommendations on the application.
  • The applicant can submit comments on the CTUIL’s recommendations and any public objections.
  • The CERC will consider all input before granting or rejecting the license.

License Terms and Conditions

  • Licenses are valid for 25 years with the possibility of renewal.
  • Licensees must comply with various regulations, including grid code standards and directions from load dispatch centers.
  • Non-discriminatory open access to the transmission system must be provided.
  • Licensees must pay applicable fees, maintain insurance, and operate efficiently.
  • Activities like electricity trading by the licensee are prohibited.

License Renewal

  • Licenses granted after competitive bidding require renewal applications two years before expiry.
  • Renewal for a period less than 25 years may be considered by the CERC.
  • The CERC may issue directions for continued operation if a licensee doesn’t apply for renewal.

Transmission Tariff

  • Tariff for competitively bid projects will be adopted by the CERC based on the Transmission Service Agreement.
  • For other projects, the CERC will determine the tariff according to applicable regulations.
  • Tariff for assets beyond the initial license period will be determined based on specific regulations.

Revocation of License

  • The CERC can revoke a license for various reasons, including breaches of terms, financial issues, or project abandonment.
  • Revocation requires providing a notice with grounds and considering the licensee’s response.

Additional Points

  • The licensee is responsible for maintaining separate accounts for different business activities.
  • The CERC and authorized personnel can inspect accounts and request information from the licensee.
  • The licensee must report major ownership changes and agreements affecting the project.

This is a simplified overview of the new regulations. For detailed information, please refer to the official CERC notification.