The Maharashtra Electricity Regulatory Commission (MERC) has directed that the proposed 400/220 kV GIS sub-station at Ambernath be taken up on priority, clearing the path for a critical transmission project aimed at strengthening power supply for Maharashtra's rapidly expanding data centre ecosystem. The commission also underscored the project's broader significance in addressing the sharp rise in demand along the Mumbai–Navi Mumbai–Thane data centre corridor and in supporting the state government's data centre policy objectives.
Exclusive Use for Data Centre Park
In its order, MERC recorded that the Ambernath sub-station is dedicated exclusively to meeting the electricity requirements of consumers located within the Green Integrated Data Centre Park at Palava. This focused allocation aims to ensure reliable power for high-density digital infrastructure.
Accelerated Implementation via DDF Framework
To ensure timely execution, MERC has endorsed an accelerated implementation route under the Demand Development Fund (DDF) framework. Under the chosen 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. This mechanism prevents any cost burden on general electricity users.
Benefits for Grid Reliability and Future Development
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.
This development is expected to significantly bolster the power infrastructure for data centres in the region, aligning with Maharashtra's ambitions to become a major hub for digital economy and cloud services.
