Govt not mulling to extend ISTS charges waiver for solar, wind projects
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
The government is not planning to extend the Inter-State Transmission System (ISTS) charges waiver for solar and wind projects , according to a senior government official.The deadline for announcing an extension on waiver on Inter-State Transmission System (ISTS) charges for setting up and commissioning solar and wind projects ended on June 30, 2025."We will not extend the waiver (for solar and wind projects)," an official told PTI in reply to a question on whether the government plans to extend the ISTS waiver.Replying to another query on the financial viability of projects which could not be commissioned by June this year, the official said, "We will evaluate their situation on a case-by-case basis and accordingly decide to provide suitable relief."The ISTS waiver helps renewable energy developers avoid significant charges that would have otherwise been incurred on moving electricity from the producing state to consumption centres.The Inter-State Transmission System (ISTS) charges are fees levied for transmitting electricity across state lines in India.If the ISTS waiver is not extended, it will lead to a significant increase in tariffs and make power generated from renewable sources uncompetitive vis-a-vis other traditional sources like coal.Last month, apex industry body Electric Power Transmission Association (EPTA) urged the government to safeguard the viability of around 30 GW clean energy projects by extending the ISTS charges waiver till March 2026.Director General of EPTA G P Upadhyay had said that investments of about Rs 2 lakh crore will be impacted if relief is not given to players in the form of an extension in the waiver.The capacity has been delayed due to reasons beyond power companies' control and they may move to CERC (Central Electricity Regulatory Commission) for solutions that may further delay in commissioning of these projects spread across states, such as Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil Nadu and Maharashtra, among others, he said.Renewable energy projects are facing various problems due to land availability, local issues and the Great Indian Bustard (found in Rajasthan and Gujarat), among others. PTI
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Deccan Herald
11 minutes ago
- Deccan Herald
Rs 300-cr plan to tackle erosion in Karnataka's coastal dists
The minister said Rs 50 crore would be allocated to Udupi under a 500-crore project to address landslides in Malnad and coastal belts.
News18
36 minutes ago
- News18
'One Nation One Election' Could Boost Economy, Cut Disruptions: Experts NK Singh & Prachi Mishra To JPC
They suggested that holding national and state elections together could significantly enhance India's economic growth, investment climate, and governance efficiency On Wednesday, a meeting of the joint parliamentary committee (JPC) led by BJP lawmaker PP Chaudhary took place in Parliament discussing the crucial One Nation One Election legislation. The subject of the day was titled 'Interaction with Shri NK Singh, former Rajya Sabha Member, Chairman of Fifteenth Finance Commission of India, former Member of the Planning Commission, former Revenue Secretary, Secretary to former Prime Minister and noted economist on the said Bills, assisted by Dr Prachi Mishra, Prof of Economics and Head & Director of Isaac Centre for Public Policy, Ashoka University". A presentation by NK Singh and Prachi Mishra made a compelling economic case for simultaneous elections. They suggested that holding national and state elections together could significantly enhance India's economic growth, investment climate, and governance efficiency. They estimated that real GDP growth is 1.5 percentage points higher around simultaneous elections compared to staggered ones, translating into an economic gain of nearly Rs 4.5 lakh crore in today's terms, equivalent to half of India's health budget or a third of the education budget. They also noted that gross fixed capital formation (GFCF), a proxy for investment activity, is 0.5 percentage points higher after simultaneous elections, reflecting increased confidence among private and foreign investors. However, frequent, staggered elections are said to cause wide-ranging disruptions to economic and social life. Industries such as manufacturing, construction, tourism, and healthcare suffer from repeated cycles of uncertainty, and migrant workers—who constitute nearly a third of India's population—are especially affected. Repeated elections force them to travel home frequently, leading to lost wages and missed voting rights. The impact also extends to education and law enforcement. Primary school enrolment dips by 0.5 percentage points around non-simultaneous elections due to teachers being deployed on election duty and schools doubling as polling stations. Crime rates tend to spike more during staggered polls as police forces remain diverted for longer periods. One of the starkest observations is that India has witnessed elections every single year since 1986, placing the nation in a state of perpetual election mode. This results in the Model Code of Conduct (MCC) being enforced up to four times in five years, restricting policymaking and delaying developmental projects. Moreover, the political consequences of frequent elections include a spillover of populist promises across states and a sharp rise in fiscally unsustainable freebies. Singh warns this trend represents a 'race to the bottom" in fiscal populism. In agriculture, frequent polls create speculative uncertainty over policies like minimum support prices (MSPs), subsidies, and loan waivers, distorting farmer decision-making and hampering long-term planning. The findings are likely to fuel the ongoing debate around the feasibility and desirability of One Nation One Election, with proponents arguing that it could improve governance stability, reduce fiscal populism, and enhance policy continuity. The panel includes members like Supriya Sule (NCP), Mukul Wasnik, Randeep Surjewala, and Priyanka Gandhi Vadra (all from Congress), Anil Desai (Shiv Sena UBT), and Kalyan Banerjee (TMC). Representing the ruling alliance are Anurag Thakur, Sambit Patra, Bhartruhari Mahtab, Baijayant Panda, Anil Baluni (all from BJP), Shrikant Shinde (Shiv Sena), and Harish Balayogi (TDP), among others. The JPC was constituted during the last winter session of Parliament after the Centre agreed to subject the ONOE Bill to detailed legislative scrutiny. Initially tabled by law minister Arjun Ram Meghwal, the committee's membership was later expanded to 39, accommodating demands from the opposition. Get breaking news, in-depth analysis, and expert perspectives on everything from politics to crime and society. Stay informed with the latest India news only on News18. Download the News18 App to stay updated! tags : economy election One Nation-One Election parliament view comments First Published: Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Deccan Herald
41 minutes ago
- Deccan Herald
Karnataka: Rs 3k-crore thermal projects in limbo as ‘FGD systems not must'
So far, Karnataka has awarded tenders worth Rs 3,430 crore for introducing FGD systems at three thermal power plants.
