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44. On 10.11.2014, at the meeting of the Steering Committee of STU (including all the constituent Utilities), R-Infra made its presentation in respect of the Transmission Project, and the use of HVDC technology informing, inter alia, that the Transmission Scheme based on HVDC Technology was proposed to be commissioned during FY 2019-20.

45. Around this period, however, the STU started entertaining doubts as to advisability of use of HVDC technology. On 05.01.2015, it (MSETCL) shifted its position and came up with a revised scheme for strengthening Mumbai's transmission system, proposing a 400KV Kudus (MSETCL) - Aarey (MSETCL) HVAC O/H Scheme ("Transmission Project based on HVAC Technology") from Kudus to Aarey instead of the Transmission Project based on HVDC Technology mooted by R-Infra. In the communication on the subject addressed to the MERC, it was stated thus:

"Note **1000 MW HVDC Terminal Stations at Kudus-Aarey and HVDC Link- Two HVDC Schemes were a part of STU Plan 2018-19 to 2023-24 with a note that consolidated detail study will be carried out considering all Mumbai related schemes separately. Subsequently STU Study indicated that with inclusion of 400 kV Velgaon, 400 kV Velgaon, 400 kV Kalwa Stitching , 400 kV Kalwa Padhge line etc. these HVDC Schemes will not be required. However, in view of the earlier CEA study in this regard and as HVAC Scheme was not referred to CEA, the STU study including these HVAC Schemes has been now referred to CEA for their comments. Hence 1000 MW Kudus Aarey HVDC Link is included in the year 2024-25 of this STU Five Year Plan (2019-20 to 2024-25) is subject to averse comments if any by CEA in the matter may lead to deletion of the Scheme from STU Five Year Plan."

69. On same date, i.e. 21.09.2020, AEMIL and AEML-T filed Case No.190/2020 before MERC praying for grant of Transmission License to AEMIL for the development of the Transmission Project based on HVDC Technology, contending, inter alia, as under:

"10. Meanwhile, STU/ MSETCL proposed 400 Kv O/H HVAC (Aaray- Kudus) Scheme and accordingly requested this Hon'ble Commission to cancel the approved HVDC Scheme proposed by AEML-T on 05.01.2015. AEML-T made its submissions on the said letter on 23.01.2015. Thereafter the Hon'ble Commission, vide its letter dated 02.05.2016, cancelled its approval accorded to AEML-T's HVDC DPR in view of the STU proposed 400 Kv O/H HVAC (Aaray- Kudus) Scheme."

"35.41 The advantages of HVDC technology over HVAC technology, and advantages of VSC technology over CSC technology for HVDC installations are as under:

a. HVDC lines are cheaper per kilometre than HVAC lines, and unlike HVAC, HVDC lines do not consume reactive power, and are therefore, not limited by length or the requirement for periodic reactive power compensation;