Inter State Transmission System: Southern HVDC tariff rebellion
Inter State Transmission System cost allocation is at the centre of a major Southern Regional dispute. A Rs 853 crore refurbishment plan for the Gazuwaka HVDC link has triggered formal objections from state utilities. The inclusion of a Rs 114 crore land lease premium has intensified scrutiny.
States have demanded a granular capital breakup before regulatory filing. The conflict revolves around whether these assets qualify under national classification within the Inter State Transmission System framework. If reclassified, associated Transmission charges would be socialised across the country instead of remaining regionally concentrated.
Technical coordination minutes highlight reliability concerns. HVDC assets are operating close to stressed thresholds. Delay in approval risks system vulnerability. Yet, Southern states are prioritising cost transparency over speed. This friction illustrates how fiscal federalism is shaping decisions within the Inter State Transmission System.
Debate over refurbished asset life and flow control adds complexity. If classified nationally, states may fund refurbishment while losing priority influence over dispatch patterns. The State electricity regulator will need to evaluate both technical necessity and tariff equity.
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