The Kerala State Electricity Regulatory Commission (KSERC) has issued a key directive mandating that all intrastate power transmission projects with a capital cost exceeding ₹250 crore (~$28.2 million) must be executed through the Tariff-Based Competitive Bidding (TBCB) route. The decision, formalized on December 17, 2025, aligns with the Kerala government’s policy directions under Section 108 of the Electricity Act, 2003, aiming to promote transparency, efficiency, and cost-effectiveness in the state’s power transmission sector.
This move follows amendments to the KSERC Tariff Regulations in 2023, introduced as Regulation 62A, which allow tariffs to be determined through competitive bidding once the state government prescribes a threshold for project costs. The threshold proposal of ₹250 crore was submitted by Kerala State Electricity Board Limited (KSEB Ltd.) and formally approved by the state government in November 2025.
KSERC’s order emphasizes that projects exceeding this capital cost limit must follow the Ministry of Power’s competitive bidding guidelines. Once a winning bidder is selected, the developer is required to approach KSERC for the grant of a transmission license and the formal adoption of the discovered tariff. The directive also ensures alignment with broader fiscal and structural reforms, including recent Union Government guidelines allowing states additional borrowing capacity contingent upon power sector reforms.
Commission Chair T.K. Jose, along with Member B. Pradeep, noted that setting the ₹250 crore threshold serves the public interest, promotes fair competition, and supports the state’s broader power infrastructure development goals.
This regulatory change also ties back to a 2022 Supreme Court judgment, which instructed state electricity regulatory commissions to establish clear frameworks for tariff determination. By instituting the TBCB route for high-capital projects, Kerala aims to strengthen accountability, reduce costs, and foster efficient resource utilization in the transmission sector.
The KSERC decision marks a significant step in Kerala’s ongoing power sector reforms, positioning the state for improved transmission efficiency, enhanced competition among developers, and better overall service delivery to consumers.
Electrify your feed! Click here to join our Whatsapp group and to get the latest updates, expert insights, and innovations driving India’s energy storage revolution.
