Section 4 in Central Electricity Regulatory Commission (Power System Development Fund) Regulations, 2014
4. Utilization of the PSDF.
(1)PSDF shall be utilized for the following purposes:(a)Transmission systems of strategic importance based on operational feedback by Load Despatch Centers for relieving congestion in inter-State transmission system (ISTS) and intra-State Transmission Systems which are incidental to the ISTS.(b)Installation of shunt capacitors, series compensators and other reactive energy generates for improvement voltage profile in the Grid.(c)Installation of special protection schemes, pilot and demonstrative projects, standard protection schemes and for setting right the discrepancies identified in the protection schemes and for setting right the discrepancies identified in the protection audits on regional basis.(d)Renovation and Modernization (R&M) of transmission and distribution system for relieving congestion.(e)Any other scheme/ project in furtherance of the above objectives such as technical studies and capacity building.(2)PSDF shall also be utilized for the projects proposed by distribution utilities in the above areas that have a bearing on grid safety and security, provided that these projects are not covered under any other scheme of the Government of India, such as Restructured Accelerated Power Development & Reforms Programme (RAPDRP), Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY) etc.(3)The private sector projects shall not be eligible for assistance from PSDF.
