I saw that probably at about the same time you did I think. As I said, I was just handed this project to work on. It appears as though they are using a reactor in series with the across-the-line connection during the transition, likely to dampen the transition spike when the motor slows down. That's fine, but you are right, this in NOT a closed transition system as was reported to me by my end user in India. I just let them know that last night. We have been doing open transition transfers for years, what we do is over speed the drive just prior to the transition so that when the speed decays while disconnected, it is closer to the operating speed. But the tricky part, as you probably know, it predicting that rate of decay, which is usually not consistent.
" We are all here on earth to help others; what on earth the others are here for I don't know." -- W. H. Auden