NSEFI seeks extension of ISTS waiver till June 2026 for qualifying green energy projects
National Solar Energy Federation of India
(NSEFI) has written to the Prime Minister's Office (PMO) requesting a one-year extension in the inter-state transmission system (ISTS) charges waiver, from the current deadline of June 30, 2025, to June 30, 2026, for
renewable energy projects
that have met specified development milestones. The federation has flagged multiple delays faced by developers despite early investments and timely actions, and proposed a milestone-based mechanism to ensure targeted relief.
In its letter dated June 3, 2025, NSEFI highlighted that the waiver of ISTS charges had been a key enabler in attracting large-scale private sector participation in renewable energy, following the Ministry of Power's announcement in November 2021. However, regulatory support through the Central Electricity Regulatory Commission (CERC) only came in February 2023, delaying the effectiveness of the scheme.
The federation said that developers who had made significant financial commitments based on the initial announcement are now impacted by delays in grid connectivity, pending statutory approvals, and unavailability of transmission infrastructure. It cited several instances, including the delay in Section 68(1) approvals linked to ongoing litigation over the conservation of the Great Indian Bustard. It also mentioned the delay in operationalisation of connectivity for many developers who had applied on time, and the non-readiness of key transmission lines like Narendra–Pune, Khetri–Narela, and Koppal–Gadag.
In the letter, NSEFI argued that despite securing connectivity through applications submitted before June 30, 2023, many projects are facing setbacks beyond the developers' control. These include law and order challenges and delays in obtaining permissions at the state level. The federation urged the PMO to provide targeted relief to developers that had followed the rules and made progress on their projects but are now at risk of missing the waiver deadline due to extraneous reasons.
NSEFI proposed that the ISTS waiver be extended by one year for projects that had applied for connectivity on or before June 30, 2023, and had achieved certain measurable milestones. These include reaching financial closure, acquiring at least 50 per cent of the required land, and placing purchase orders for wind turbine generators or solar inverters.
The letter also mentioned that such milestone-based relief would not significantly impact the overall transmission pool or increase the burden on distribution companies, since it would only apply to a specific subset of projects that were originally planned to be commissioned before June 2025.
According to the federation, this proposal aligns with the intent of the Green Open Access Rules and recent Ministry of Power notifications for Battery Energy Storage and Pumped Hydro Storage projects, which also follow milestone-based eligibility criteria.
Subrahmanyam Pulipaka, Chief Executive Officer of NSEFI, stated in the letter that this approach would ensure that projects already in an advanced stage of development do not suffer due to procedural and infrastructure-related delays. He emphasised that the requested extension would help maintain investor confidence, provide continued access to affordable renewable power for consumers, and support India's goal of achieving 500 GW of non-fossil fuel capacity by 2030.
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