Case No. 24 of In the matter of Application of Reliance Infrastructure Ltd. for Amendment of Transmission Licence No.

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1 Before the MAHARASHTRA ELECTRICITY REGULATORY COMMISSION World Trade Centre, Centre No.1, 13 th Floor, Cuffe Parade, Mumbai Tel /65/69 Fax Website: / Case No. 24 of 2015 In the matter of Application of Reliance Infrastructure Ltd. for Amendment of Transmission Licence No. 1 of 2011 CORAM Shri Azeez M. Khan, Member Shri Deepak Lad, Member Reliance Infrastructure Ltd. H-Block, 1 st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai Applicant ORDER Dated: 14 March, M/s. Reliance Infrastructure Ltd. (Transmission Business) (RInfra-T) has submitted an Application dated 2 February, 2015 under Section 18 of the Electricity Act (EA), 2003 and the MERC (Transmission Licence Conditions) Regulations, 2004 as amended in 2006 for amendment of its Transmission Licence No.1 of 2011 granted by the Commission on 11 August, RInfra-T s prayers are as follows: - Order Case No. 24 of 2015 Page 1 of 9

2 (a) The existing Transmission Licence of RInfra (Transmission Licence No.1 of 2011) Part II: General Terms and Conditions, 3. Area of Transmission be amended so as to cover above connectivity/schemes for a period of 25 years with effect from 16th August 2011 under the provisions of Section 15(8) read with Section 18 of EA 03 and the Maharashtra Electricity Regulatory Commission (Transmission Licence Conditions) Regulations 2004; by adding following: Proposed System Transmission Lines kv RInfra Saki - TPC 1 transmission line from RInfra-T s 220 kv Saki Substation to TPC-T s 220 kv Saki Substation.-~1.5 KM Length kv RInfra Saki - TPC 2 transmission line from RInfra-T s 220 kv Saki Substation to TPC-T s 220 kv Saki Substation.~1.5KM Length Proposed System List of EHV Substation Bays Existing bays are proposed to be utilized, which are already covered under existing license. (b) In the alternative to (a) above this Hon ble Commission may be pleased to grant Transmission Licence to RInfra-T for a period of 25 years under the provisions of Section 14 read with Section 15 & Section16 of EA 03 for the lines stated in prayer a above. (c) pass any other Order as may be appropriate under the circumstances; (d) the Hon ble Commission may be pleased to permit the Petitioner to add or modify this petition with additional information, if so required during the course of hearings. 3. RInfra-T in its Application has stated that: - i. RInfra-T is a Transmission Licensee pursuant to the Licence No. 1 of 2011 dated 11 August, 2011 granted by the Commission. The Licence is a Line specific Licence in the Intra-State Transmission System. RInfra-T has in place a transmission network and interconnection with transmission grid with RInfra-G s (Generation Business) Dahanu Thermal Power Plant (DTPS) and the Transmission Network of Tata Power Company Ltd. (TPC) and Maharashtra State Electricity Transmission Company Ltd. (MSETCL). The network is further interconnected to the high density population distribution region in the suburbs of Mumbai. ii. The transmission network of RInfra-T consists of four overhead lines emanating from RInfra-G s DTPS to 8 EHV Substations at Ghodbunder, Aarey, Versova, Goregaon, Gorai, Saki, RInfra Borivali and Chembur EHV Substations. iii. The peak demand of the Mumbai System is around 3600 MW during FY which is met by RInfra-G and TPC-G s generation and through power purchases from Order Case No. 24 of 2015 Page 2 of 9

3 sources outside Mumbai region. Looking at past trends and taking into consideration the directives of the Government of Maharashtra ( GoM ), the demand of Mumbai is expected to grow at a CAGR of 3-4% in the near future. iv. The fragility of the Mumbai Transmission network and the need for adequate augmentation has been extensively deliberated by all concerned statutory authorities on several occasions. The Commission too has on several occasions expressed its concerns regarding strengthening the Mumbai Transmission network. v. State Transmission Utility (STU) is empowered to discharge all functions of planning and co-ordination relating to Intra-State Transmission System (InSTS). As a part of its functions, the STU identifies, suggests and approves proposals of Transmission Licensees for strengthening of the Transmission System. vi. For further strengthening of Transmission Network of Mumbai, STU has approved Double Circuit 220 kv Line connecting RInfra-T s 220 kv Saki Substation with TPC- T s 220 kv Saki Substation. vii. The interconnection will improve the reliability of the existing Transmission System. RInfra-T had submitted the Connection Application to STU, which has granted inprinciple approval for this scheme on 15 February viii. The interconnection scheme has been included in the STU Plan. The Commission has accorded its in-principle approval to the Detailed Project Report (DPR) for this interconnection scheme on 30 September, ix. The existing System (Transmission Lines/list of EHV Substation Bays) as well as proposed System (Transmission System/ list of EHV Substation Bays) has been more particularly set out in RInfra-T s Licence. The present Petition is filed by RInfra-T under Section 18 of the EA, 2003 seeking amendment of its Transmission Licence to cover this new Line between 220kV RInfra Saki Substation and 220kV TPC Saki Substation. x. The scheme proposed by RInfra-T would strengthen the Mumbai System by reducing load on the critical 220 kv Aarey-Borivali Line, and would bring the 220 kv RInfra Saki EHV Station in the ring system which currently is otherwise in radial system. xi. RInfra-T is entitled to grant of Transmission Licence under sub-section (8) of Section 15 of the EA, 2003 read with Section 18. In the event of the Commission concluding that the present Application ought to be considered as a grant of Licence within the meaning of Section 14 of the EA, 2003, the present Petition may be treated as an Application filed pursuant to provisions of Section Based on preliminary scrutiny, the Commission sought additional information, documents and clarifications from RInfra-T on 12 May, RInfra-T was also directed to provide a copy of its Application to STU for its comments. RInfra-T submitted its replies on 22 May, Further, vide its letter dated 10 June, 2015, STU submitted its recommendations for the amendment of RInfra-T s Licence to include the proposed 220kV Lines between RInfra-T s Saki EHV Station and TPC s Saki EHV Station, stating Order Case No. 24 of 2015 Page 3 of 9

4 that the scheme is important for strengthening of the Mumbai Transmission Network. STU also stated that the scheme has been approved by it vide letter No. MSETCL/CO/STU/2426 dated 15 February, 2013, and is a part of the 5-year Plan for Mumbai Metropolitan Region. 5. A Technical Validation Session (TVS) was held on 21 July, RInfra-T made a presentation outlining the need, scope and status of the proposed Transmission Line. The Commission observed that there is a delay in the execution of the scheme as compared to the timelines approved in the DPR and asked RInfra-T to explain it. There is also a delay in implementing the Commission s earlier Order dated 23 August, 2013 in Case No. 120 of 2012 regarding releasing 33kV outlets to TPC-D. The Commission directed RInfra-T to submit the status report and action being taken. 6. The Commission further directed RInfra-T to obtain the Connection Agreement for the proposed Transmission Line and submit a copy. The Commission also asked RInfra-T about the procedure adopted for undertaking various activities such as civil works and cable trenching, procurement of cables and its accessories, etc. 7. On 26 August, 2015, RInfra-T submitted its responses as follows: 7.1 DPR was submitted for in-principle approval of the Commission on 29 May, 2013, wherein the scheme commissioning was estimated as 18 months from receipt of all statutory clearances and assuming parallel execution of various tasks. Connection Agreement finalization is essential before proceeding with major project activities as it clarifies various interconnection issues such as equipment at Connection Points, Substation equipment, Protection System, Communication facilities, Site Responsibility Schedule, etc. 7.2After directions from STU/the Commission-constituted Committee, TPC-T signed the Connection Agreement in November, 2014 and handed it over to STU. Hence, scheme completion and commissioning is now estimated by March This change is primarily on account of delay in finalization and signing of Connection Agreement by TPC-T. 7.3 The status of kv outlets sought by TPC-D is as under:- Two outlets from RInfra-Ghodbunder S/s have been released and commissioned in July, As regards two outlets from RInfra-Goregaon S/s, it is proposed to release the outlets from RInfra-Versova S/s as RInfra Goregaon Station loading is approaching its firm capacity. As regards two outlets from RInfra-Saki S/s, it is proposed to interchange with TPC-BKC Substation in view of upstream network constraints. Balance four outlets from RInfra- Aarey S/s will be considered in FY after necessary load flow study, as upstream network constraints are expected to be eased by that time on account of RInfra-Saki TPC- Saki 220kV interconnection which is expected to be commissioned by March, 2016, and RInfra-D is also in the process of shifting load from Aarey to Chembur S/s. Order Case No. 24 of 2015 Page 4 of 9

5 RInfra and TPC have a formed joint team of senior executives to discuss and decide outlet requirements of both Distribution Licensees holistically. Two rounds of meetings have already been held. 7.4 STU has handed over to RInfra a copy of the Connection Agreement on 28 July, As regards the procedure adopted for undertaking various activities such as civil works and cable trenching, etc., offers from several vendors were sought and contracts have been awarded after undertaking technical evaluation of the offers received. Regulatory Proceedings 8. The Commission accepted RInfra-T s Application, and admitted the Petition on 26 October, The legal and regulatory framework governing the process of amendment of a Transmission Licence is set out in Section 18 of the EA, 2003 and Regulation 7 of the MERC (Transmission Licence Conditions) Regulations, 2004 as amended in Accordingly, RInfra-T was directed to publish a Public Notice in accordance with Regulation 7.2 read with section 18(2) (a) of the EA, 2003 seeking suggestions or objections from the public on its Application. RInfra-T published the Public Notice on 2 November, 2015 in the following daily newspapers:- a) The Hindustan Times (English) b) Indian Express (English) c) Loksatta (Marathi) d) Samana (Marathi) 9. A copy of RInfra-T s Transmission Licence Amendment Application along with enclosures was made available on RInfra-T s website. No objections or suggestions were received by either RInfra-T or the Commission in response to this Public Notice within the stipulated time. 10. Section 18 (2) (b) of EA, 2003 provides that, if an Application for a Licence is received for an area including the whole or any part of any cantonment, aerodrome, fortress, arsenal, dockyard or camp or of any building or place in the occupation of the Central Government for defence purposes, no-objection to the grant of amendment of the Licence on the part of the Central Government needs to be ascertained. Accordingly, vide letter dated 20 November, 2015, the Commission invited objections, if any, from the Ministry of Defence, Ministry of Shipping and Ministry of Civil Aviation, Govt. of India to RInfra-T s Licence Application. Vide its letter dated 22 February, 2016, Ministry of Shipping communicated its No-Objection. No other communication was received within the stipulated period of 30 days. 11. After evaluating the Application submitted by RInfra-T, the Commission published a Public Notice in two English (Times of India and DNA) and two Marathi (Lokmat and Loksatta) daily newspapers on 31 December, 2015 stating the details of the amendment sought to its Transmission Licence by RInfra-T, and inviting suggestions or objections. It was also mentioned that opportunity to be heard in person would be given by the Order Case No. 24 of 2015 Page 5 of 9

6 Commission at the Public Hearing to be held on 3 February, 2016 at 11:30 hrs in the Office of the Commission at 13th Floor, Centre No. 1, World Trade Centre, Cuffe Parade, Mumbai. 12. No suggestions or objections were received within the stipulated period. The Public Hearing was conducted on 3 February, The list of persons present is annexed at Appendix 2. RInfra-T made a presentation on its Transmission Licence Amendment Application. The STU representative reiterated that the scheme is a part of the 5 year STU Plan, and that STU has already submitted its recommendations for amendment of RInfra- T s Transmission Licence to include the proposed interconnection scheme. No objections or suggestions were received during the Public Hearing either. Commission s Analysis and Ruling 13. The Commission notes that, in the matter of Petition filed by TPC regarding requirement of 33kV outlets (Case No. 120 of 2012) from RInfra s Transmission System, it had directed MSETCL (STU) to form a Committee under the Chairmanship of Professor of Electrical Engineering from IIT/V.J.T.I. and Technical Representatives from RInfra-T, TPC-D, SLDC and the Commission for finalising the issue of availability of transmission outlets with solutions in the form of various scenarios. 14. In its Order dated 23 August, 2013, the Commission has taken on record the significance of the interconnection between RInfra 220kV Saki RSS to TPC 220kV Saki RSS: The Committee Report mentions that the Committee has carried out System Contingency Studies on 220kV Aarey (RInfra) Borivali (TPC) Line of the Mumbai Power System and from the various scenarios of contingency Studies the Committee concluded that as the RInfra-T s Chembur S/s has been commissioned, 148 MW of Load from Aarey S/s needs to be shifted to Chembur S/s and 220kV Saki S/s of RInfra kV Saki S/s of TPC interconnection should be completed. This interconnection will play a major role in strengthening the Network and there will be a sufficient safety margin available for 220kV Aarey (RInfra) Borivali (TPC) Line. 15. The Commission notes that STU has submitted its recommendations for the proposed interconnection scheme. The Commission has also accorded its in- Principle approval and the scheme is at an advanced stage of completion. 16. The Commission has evaluated the claims of RInfra-T as per the provisions of EA, 2003 and the Regulations, and has considered all the material placed before it regarding the need for the proposed 220 kv Transmission Line in the InSTS and the recommendations of the STU. The Commission is of the view that RInfra-T satisfies the requirements for the amendment of the Transmission Licence as sought. Order Case No. 24 of 2015 Page 6 of 9

7 17. Considering the above facts, in exercise of its powers under Section 18 of the EA, 2003, and in accordance with the provisions of the MERC (Transmission Licence Conditions) Regulations, 2004 as amended in 2006, the Commission hereby amends M/s Reliance Infrastructure Limited s Transmission Licence (No.1 of 2011) to the extent of adding the following two lines in the Area of Transmission as shown below, from the date of this Order: Proposed System -Transmission Lines.... Sr. No kV RInfra Saki - TPC - 1 Transmission Line (1.5 km) from RInfra EHV Saki Substation to TPC EHV Saki Sub-station. Sr. No kV RInfra Saki - TPC - 2 Transmission Line (1.5 km) from RInfra EHV Saki Substation to TPC EHV Saki Sub-station. 18. The Amendment to the Transmission Licence No. 1 of 2011 accompanies this Order. 19. The Secretariat of the Commission shall forward a copy of the Amendment to the Transmission Licence to the Government of Maharashtra, all Electricity Transmission Licensees and Distribution Licensees in the State, the Central Electricity Authority, the concerned Local Authorities/Local Self-Governments (Zilla Parishads, Municipal bodies) of the District and cities/towns through which the Transmission Line passes, and have it uploaded it on the Commission s websites. The Application of M/s Reliance Infrastructure Ltd. in Case No. 24 of 2015 stands disposed of accordingly. Sd/- (Deepak Lad) Member Sd/- (Azeez M. Khan) Member Order Case No. 24 of 2015 Page 7 of 9

8 Appendix 1 Attendance at Technical Validation Session conducted on 21 July, 2015 Sr. No. Name Company / Institution 1 Shri Rakesh Raj RInfra-T 2 Shr. Sumegh Mangle RInfra-T 3 Shri P.G. Pokmare RInfra-T 4 Shr. Arwindkumar RInfra-T 5 Radha Prasad RInfra-T Order Case No. 24 of 2015 Page 8 of 9

9 Appendix 2 Attendance at Public Hearing conducted on 3 February, 2016 Sr. No. Name of the participant Institution 1 Shri Rakesh Raj RInfra-T 2 Shri P.G. Pokmare RInfra-T 3 Mrs. Radha Prasad Muni RInfra-T 4 Shri Sumegh Mangle RInfra-T 5 Shri Vikas Sonar RInfra-T 6 Shri Arvind Kumar Sharma RInfra-T 7 Shri Kishor Patil RInfra-T 8 Shri Ganesh Balsubramanium RInfra-T 9 Shri R.N. Farkade, SE STU Order Case No. 24 of 2015 Page 9 of 9