New Delhi: Maharashtra State Electricity Transmission Company Limited (MSETCL) has taken a significant step toward strengthening the state’s power infrastructure by issuing a Letter of Intent (LOI) dated 14 August 2025, appointing PFC Consulting Limited (PFCCL) as the Bid Process Coordinator (BPC) for selecting a Transmission Service Provider (TSP). This move aims to develop a 765/400/220 kV AIS substation at Kandalgaon in Raigad district through a competitive bidding process under the Tariff-Based Competitive Bidding (TBCB) guidelines.
Raigad Power Transmission Ltd: A Dedicated SPV
To facilitate the project, Raigad Power Transmission Ltd, a special purpose vehicle (SPV), has been incorporated as a wholly owned subsidiary of PFCCL. The SPV will handle preparatory activities, including project profiling, land acquisition, surveys, and securing forest clearances if required. After the bidding process is completed, the SPV will be transferred to the successful bidder, who will take over the development of the transmission system.
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Role of PFCCL as Bid Process Coordinator
PFCCL, a wholly owned subsidiary of Power Finance Corporation (PFC), has been appointed as the Bid Process Coordinator (BPC). Under the TBCB framework issued by the Ministry of Power, the BPC is responsible for guiding the entire selection process of the Transmission Service Provider. PFCCL will ensure transparency, efficiency, and compliance with all regulatory requirements while facilitating the smooth implementation of the project.
Strategic Importance of the Kandalgaon Transmission Project
The Kandalgaon transmission project will strengthen the power transmission network in Maharashtra, improve grid reliability, and support the state’s growing energy demand. By establishing a high-capacity AIS substation, the project aims to enhance power evacuation from generation centers, optimize load management, and promote efficiency in the transmission system.
TBCB Framework Ensures Transparent Development
The selection of the TSP through the TBCB process ensures that the project is awarded to the most competitive bidder while adhering to transparency, accountability, and regulatory compliance. This approach aligns with India’s broader goal of modernizing its power infrastructure while encouraging private sector participation in transmission projects.
About Power Finance Corporation (PFC)
Power Finance Corporation (PFC) is a premier public sector financial institution in India specializing in financing and consultancy for the power sector. Established under the administrative control of the Ministry of Power, PFC has played a key role in supporting India’s power infrastructure development through funding, project advisory, and consultancy services. PFCCL, as its consulting arm, provides expert guidance on project structuring, bidding processes, and execution strategies, ensuring timely and effective implementation of critical power projects.
