Mumbai: The Supreme Court’s dismissal of an appeal by Tata Power Ltd challenging the contract for high voltage direct current (HVDC) Kudus-Aarey transmission project by Adani Electricity Mumbai Infra Limited (AEMIL) has finally paved the way for the evacuation of an additional 1,000 mw in Mumbai.
This will meet the rising electricity demand of Mumbai and avoid power shortages. Mumbai’s power demand is expected to rise to 5,000 mw by 2024-25 from the present level of 3,000 to 3,500 mw.
Tata Power had challenged the contract on the grounds that it was not executed through a tariff based competitive bidding process.
Free Press Journal broke the story about the clearance given by the Maharashtra Coastal Zone Regulatory Authority for the project in August. The Rs 7,000 crore project is expected to be complete in 2025. The Maha Vikas Aghadi government cleared the project in May.
Kudus-Aarey transmission line
The Kudus-Aarey transmission line is one of the projects which has been under discussion to eliminate power transmission constraints in Mumbai and thereby avoid major grid failures and outages.
Adani Electricity has welcomed the apex court’s judgement. ‘’It is a big win for Mumbaikars as it paves the way for bringing an additional 1000 mw of affordable renewable energy to meet the city’s rising demand. This HVDC project is a landmark project for the city’s electrical infrastructure and we are confident of completing it in a timely manner,’’ said the Adani Electricity spokesman.
The project got clearance based on the licence granted by the Maharashtra Electricity Regulatory Commission (MERC) that came into force on March 21, 2021, authorizing AEMIL (the transmission licence) to build, own, operate and maintain the 1,000MW HVDC link for a period of 25 years (up to March 20, 2046).
400kV Kharghar-Vikhroli double-circuit line project
Another important project is the 400kV Kharghar-Vikhroli double-circuit line being developed by Kharghar Vikhroli Transmission Pvt (KVTPL), a wholly-owned subsidiary of Adani Transmission. The line, spanning 74km and with a power transmission capacity of 1,000MW is estimated to cost Rs 1,890 crore.
Energy expert Mr Ashok Pendse said that the Mumbai’s variable cost from Tata Power’s Chembur unit and Adani Electricity’s Dahanu plant is approximately Rs 5 to 6 per unit.
‘’The power is, however, available at Rs 3 per unit across the country. But the problem is getting that power into Mumbai. Kudus Aarey is a western Corridor similarly eastern corridor is also coming up. Both these corridors will bring down the electricity cost of Mumbai consumers,’’ he said.
