EPTA urges phased ISTS waiver withdrawal to support renewable energy projects
New Delhi: As India moves towards achieving 500 GW renewable energy capacity by 2030, the
Electric Power Transmission Association
(EPTA) has urged the government to reconsider the planned withdrawal of the Inter-State Transmission System (ISTS) waiver, proposing milestone-based eligibility and phased rollback mechanisms to support developers affected by external delays.
The
ISTS waiver
, introduced in 2016, has been extended only once and is now scheduled for phased withdrawal starting July 1, 2025. According to EPTA, the current plan to reduce the waiver benefit by 25 per cent each year may negatively impact ongoing
renewable energy projects
, affect investment flows, and increase power costs for commercial and industrial (C&I) consumers, who already face some of the highest electricity tariffs globally.
EPTA has proposed a 10 per cent annual withdrawal plan instead of the proposed 25 per cent, stating that a calibrated approach would minimise cost escalation and ensure continued competitiveness of green power.
"The government has been very supportive of the sector and has introduced number of policy measures, particularly in the last six months. We are very hopeful that the government will again take a more pragmatic view on the ISTS waiver issue,' said
G.P. Upadhyaya
, Director General, EPTA.
'We are not seeking a blanket extension. We are only proposing that the projects which have achieved key development milestones, such as securing financial closure, acquiring at least 50% of required land, and placing key equipment orders, should be granted a 6-9 month window to avail the ISTS waiver benefits,' Upadhyaya said.
The association has requested that projects with significant progress but delayed by uncontrollable factors be granted limited additional time to come under the waiver's ambit. EPTA's submission aligns with milestone-linked waivers already extended for pumped hydro and battery storage projects until June 2028.
EPTA highlighted that over USD 100 billion in transmission investment is expected in the next 8 to 10 years, with the sector playing a central role in India's renewable energy transition. The association has also called for scaling up domestic manufacturing of 765 kV high-voltage direct current (HVDC) equipment under the Production Linked Incentive (PLI) scheme, citing constraints in importing from European and Chinese manufacturers.
The industry body also mentioned key infrastructure initiatives such as the planned offshore transmission line from the Andaman Islands to Paradip in Odisha, under the One Sun, One World, One Grid initiative. The project aims to connect the island's demand centres with green power from the mainland. It further pointed to India's growing grid strength and its potential to facilitate cross-border links, including possible future connections from the Andaman Islands to Singapore and from Gujarat to the UAE.
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