MERC to boost power supply for data centre corridors in Mumbai region

Mumbai: The Maharashtra Electricity Regulatory Commission (MERC) has directed that the proposed 400/220 kV GIS sub-station at Ambernath be taken up on priority, paving the way for a critical transmission project intended to bolster power supply for Maharashtra’s rapidly expanding data centre ecosystem. MERC also highlighted the project’s broader importance in addressing the sharp rise in demand along the Mumbai–Navi Mumbai–Thane data centre corridor, and in supporting the state govt’s data centre policy objectives.

In its order, the commission recorded that the Ambernath sub-station is dedicated exclusively to meeting electricity requirements of consumers located within the Green Integrated Data Centre Park at Palava.

To ensure timely execution, MERC has endorsed an accelerated implementation route under the Demand Development Fund (DDF) framework. Under “Option 1”, the project will be executed by Lodha Developers Ltd. using its own capital, under the supervision of the State Transmission Utility -- Maharashtra State Electricity Transmission Company Ltd. (MSETCL). Upon completion, the asset will be handed over to MSETCL for operations and maintenance, free of cost, enabling readiness for projected data centre loads by 2028.

A key feature of the arrangement is tariff protection. MERC noted that the entire capital cost will be borne by Lodha Developers and will not be claimed in MSETCL’s Aggregate Revenue Requirement (ARR), ensuring that the expenditure does not flow through to electricity consumer tariffs.

The commission observed that timely commissioning would help avoid transmission constraints, improve grid reliability in the Ambernath region, and ensure adequate transmission capacity for future high-density commercial and digital infrastructure development. The matter was deliberated in view of rapidly increasing load demand, the urgent need for transmission augmentation, and regulatory provisions for dedicated electrical infrastructure for specific consumers or consumer groups, an official added.