Musalgaon Power Transmission Project Seeks MERC Approval

Musalgaon Power Transmission Limited (MPTL) has submitted a petition to the Maharashtra Electricity Regulatory Commission (MERC) on September 16, 2026, seeking a transmission license for the establishment of a 220/132/33 kV Air Insulated Substation (AIS) in Musalgaon, Nashik district. This initiative is part of a broader strategy to enhance the regional electricity transmission network, improve reliability, and cater to the increasing electricity demand, particularly in light of the upcoming Nashik-Trimbakeshwar Simhastha Kumbh Mela scheduled for 2027.

The proposed substation will include significant infrastructure, such as two 100 MVA, 220/132 kV interconnecting transformers and two 50 MVA, 220/33 kV power transformers. The project will also incorporate transmission bays, double-circuit transmission lines, and loop-in-loop-out (LILO) arrangements to ensure seamless integration with the existing electricity network. Additionally, a 220 kV double-circuit line will connect Musalgaon to the existing 400 kV Babhaleshwar substation, while another line will link it with Raymond. Further, 132 kV transmission lines will extend connectivity to nearby areas including Khaparale, Akole, Sangamner, and Sinner.

Maharashtra’s Empowered Committee granted in-principle approval for the project during its eighth meeting on July 8, 2025, estimating the total project cost at ₹252.68 crore. Following this, the Maharashtra government authorized the implementation of the project through competitive bidding on October 3, 2025. REC Power Development and Consultancy Limited (RECPDCL) was appointed as the Bid Process Coordinator, issuing the Request for Proposal on October 15, 2025. After amendments to the bidding documents, the final bid submission deadline was set for February 3, 2026, with the electronic reverse auction taking place on February 17, 2026, leading to MSETCL being selected as the successful bidder.

The Bid Evaluation Committee confirmed MSETCL's selection on April 22, 2026. RECPDCL issued the Letter of Intent on June 16, 2026, which MSETCL accepted shortly thereafter. On September 7, 2026, RECPDCL communicated the final acquisition price of ₹220.89 lakh for the project-specific company, with the Share Purchase Agreement and Transmission Service Agreement signed on September 9, 2026, transferring full ownership to MSETCL.

MPTL has indicated that the commercial operation is expected to commence 12 months from the effective date of the license. The company has requested MERC to grant the transmission license and designate it as the official transmission service provider. Once operational, the project is anticipated to alleviate existing transmission constraints, bolster network connectivity, and enhance the reliability of power supply in Nashik and its surrounding regions, thereby supporting Maharashtra’s growing electricity needs, especially during significant events like the 2027 Simhastha Kumbh Mela.