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7. Immediately after the completion/commissioning of the scheme, R-Infra-T should communicate to the Commission, the date of completion of the scheme, actual cost incurred, escalation in cost, if any with reasons, the scope and objectives of the scheme and to what extent they have been achieved, etc. so as to facilitate a comparison between the in-principle clearance and the actual.”

15. On 5 January 2015, MSETCL proposed a revised scheme for strengthening Mumbai’s transmission system to MERC. MSETCL proposed that it would establish a 400kV Kudus – Aarey HVAC scheme. The reason for substituting the HVDC project to be executed by R-Infra with MSETCL’s HVAC transmission link from Kudus to Aarey was clarified in paragraph 9 of the letter which has been extracted below:

37. On 29 December 2020, the appellant filed objections before MERC objecting to the transmission application filed by AEMIL and AEML-T. In their response dated 31 December 2020, AEMIL and AEML-T stated that the approval of the DPR was cancelled by MERC only due to the proposal of MSETCL that the technology be altered from HVDC to HVAC. However, the overhead HVAC scheme which was proposed by MSETCL was not implemented. Hence, the PART A HVDC Scheme as a bulk power injection scheme for Mumbai was deliberated which resulted in reconsideration of the transmission project based on HVDC technology which had already been approved earlier.

E. 3.1 The New - Old Conundrum

104. The GoM’s GR does not provide any clarity on the term ‘new’ project leaving it open to MERC to interpret the phrase. MERC by its order dated 21 March 2021 granted a licence for the HVDC Kudus-Aarey transmission project under Section 62 of the Act to AEML-T holding that it was an ‘existing’ project as on the date the GoM’s GR was notified, that is 4 January 2019. For arriving at this conclusion, MERC referred to the application for grid connectivity for the Kudus- Aarey HVDC project filed by AEML-T on 23 November 2018. By its letter dated 23 November 2018, AEML-T sought an amendment to the letter issued by MERC granting grid connectivity to the 2 x 500 HVDC (VSC based) scheme from Nagothane to Aarey. The amendment sought by AEML-T to the letter issued by MERC must be read in the context of a meeting that was held between MSETCL and AEML-T where MSETCL suggested that the HVDC project be considered from Kudus substation as opposed to Nagothane substation since it is closer to the Aarey substation. However, MSETCL did a turn-around and on 5 January 2015 cancelled the Nagothane- Aarey project of R-Infra and instead proposed a PART E Kudus-Aarey HVAC project by itself. By the proposal dated 5 January 2015, MSETCL altered the point from Nagothane to Kudus, and the technology from HVDC to HVAC. Accordingly, MERC cancelled the in-principle approval granted to AEML-T for the HVDC Nagothane - Aarey scheme. However, due to right of way issues in the construction of the overhead line, the 400KV Aarey to Kudus HVAC scheme never took off.

125. Based on the above decision, in its additional submission dated 20 January 2021 filed before MERC, MSETCL after adverting to the aforementioned minutes of meeting of the EC stated that it would proceed in accordance with the decision of the EC. Clarifying the same in its written submission dated 08 February 2021 filed before the MERC, it stated that this implied that the HVDC Project being an old project, it would not be required to go through the TBCB route:

9. It is submitted that present HVDC Scheme was informed to Empowered Committee Members during 4th Empowered Committee meeting (as also recorded in MoM dated 30.05.2020) in line with the Government of Maharashtra GR dt. 04.01.2019. Earlier Nagothane-Aarey HVDC project was submitted by erstwhile Rinfra-T and was included in STU plan 2014-15 to 2018-19. This project was approved by Hon'ble MERC to be implemented by Rinfra-T. Subsequently HVAC Kudus - Aarey scheme was submitted by MSETCL and was included in STU plan of 2015-16 to 2019-20. This project was approved by Hon'ble Commission to be implemented by MSETCL. However this HVAC project was subsequently cancelled. Further, M/s. AEML-T has again submitted VSC based 1000 MW Kudus to Aarey HVDC Scheme to STU on dated 23/11/2018 and the same was included in STU five-year plan of 2018-19 to 2022-23 but later it was deleted as other HVAC schemes viz 400 kV Velgaon, 400 kV Kalwa 11 & 400 kV Kalwa - Padghe M/C PART E line were explored as alternative to HVDC Scheme.