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Time of India
14-07-2025
- Business
- Time of India
Govt may not extend ISTS charges waiver for solar and wind projects
The Union government is not planning to extend the Inter-State Transmission System (ISTS) charges waiver for solar and wind projects, according to a PTI report. This decision, as conveyed by a senior government official, marks a pivotal moment for the renewable energy sector, which had largely benefited from the waiver in transmitting clean electricity across state lines without incurring significant charges. The ISTS charges, essentially fees for using national grid infrastructure to move power between states, were previously waived to incentivise the growth of renewable energy. The non-extension means that projects commissioned after the deadline will now face these charges, potentially leading to a notable increase in power tariffs and raising concerns about the competitiveness of renewable energy against traditional sources like coal. However, in a move to mitigate the immediate impact on projects that missed the deadline due to unforeseen circumstances, the official said, "We will evaluate their situation on a case-by-case basis and accordingly decide to provide suitable relief." This suggests a more nuanced approach than a blanket withdrawal, offering a glimmer of hope for developers caught in commissioning delays. The decision comes despite strong appeals from industry stakeholders. Last month, the Electric Power Transmission Association (EPTA), an apex industry body, had urged the government to extend the ISTS charges waiver until March 2026. G.P. Upadhyay, Director General of EPTA, warned that investments totaling approximately ₹2 lakh crore (around $24 billion USD) across some 30 GW of clean energy projects could be jeopardised without such an extension. EPTA highlighted that many projects, spread across states like Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, and Maharashtra, have faced delays due to reasons beyond the developers' control. These include challenges related to land availability, various local issues, and environmental concerns, notably the protection of the Great Indian Bustard in regions of Rajasthan and Gujarat, which has led to prolonged approvals and grid connectivity issues. Developers are now contemplating approaching the Central Electricity Regulatory Commission (CERC) for solutions, which could further prolong commissioning timelines. The ISTS waiver has been a crucial policy tool, enabling renewable energy developers to bypass substantial transmission costs , thereby making green power more economically attractive. Its withdrawal is expected to recalibrate project economics, potentially increasing the cost of renewable power.
Mint
14-07-2025
- Business
- Mint
Govt not mulling to extend ISTS charges waiver for solar, wind projects
New Delhi, Jul 14 (PTI) 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 ₹ 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.
Time of India
14-07-2025
- Business
- Time of India
Govt not mulling to extend ISTS charges waiver for solar, wind projects
Live Events (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 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 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 Inter-State Transmission System (ISTS) charges are fees levied for transmitting electricity across state lines in 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 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 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 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 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
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Business Standard
08-07-2025
- Business
- Business Standard
India-Canada interim trade deal back on the table after 2 years of tensions
For the last few years, relations between India and Canada have been cold — even frigid — but a thaw is in sight. Among the factors effecting this shift is bilateralism, which has become the flavour of the season, courtesy Trump-era trade wars. Also, there has been a regime change in Canada, with Justin Trudeau making way for a new Prime Minister. Last month, as part of the efforts to reset their diplomatic ties, India and Canada decided to resume talks for an interim trade agreement after a lull of nearly two years. The decision followed a meeting between Prime Minister Narendra Modi and his Canadian counterpart, Mike Carney, on the sidelines of the G7 Summit in Alberta, the westernmost of Canada's three prairie provinces. Modi and Carney also agreed to resume senior ministerial as well as working-level engagements across domains to 'rebuild trust' and 'bring momentum' to the relationship. Another decision was to designate new high commissioners in each other's capitals. This was Modi's first in-person interaction with Canada's new Prime Minister. The development is significant, considering how severely fractured the relations had become. The ties plummeted to an all-time low after a diplomatic spat over the killing of Khalistani separatist Hardeep Singh Nijjar in June 2023, with then Canadian prime minister, Justin Trudeau, alleging a potential India link to it. Things went further downhill last year when Canadian authorities suggested that the Indian high commissioner and five other diplomats were linked to Nijjar's murder. In protest, India recalled the six diplomats in October, and also expelled an equal number of Canadian diplomats. The political tensions had a direct impact on trade deal talks, which were stalled in September 2023. Negotiations, at that point, were at an advanced stage and both sides had hoped to finalise the deal by the end of that year. The decision to resume talks comes at a critical time when the geopolitical situation is evolving fast, necessitating the need to forge stronger bilateral economic deals. Years in the making The trade deal between India and Canada has been in the works for years. Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the two started nearly 15 years ago in New Delhi. However, even after the 10th round of negotiations, in August 2017, a trade pact was nowhere in sight. Over the following three years, after several stocktaking meetings, both sides decided to go ahead with an early harvest deal, or a preliminary agreement. In March 2022, the two re-launched talks for a comprehensive deal to create new opportunities to boost trade and investment. It was decided that an early progress trade agreement (EPTA) would be a transitional step towards the CEPA. The EPTA, it was decided, would include discussions on goods, services, rules of origin, sanitary and phytosanitary measures (regulations to protect human, animal, and plant life or health from risks associated with international trade), technical barriers to trade, and dispute settlement. Government officials said India's key areas of interest would be getting greater market access for its pharmaceutical products, readymade garments, and agriculture goods, besides easier movement of skilled workers to create more jobs for its IT professionals. Canada's priority was seeking greater market access for its agricultural products such as pulses, among other things. Along with the CEPA, Canada and India had also decided to accelerate negotiations on a Bilateral Investment Agreement. This was a top priority for Ottawa. Ask him what the picture looks like now and Ajay Srivastava, a former trade ministry official and founder of Delhi-based think-tank Global Trade Research Initiative, says the India-Canada trade deal will be easy to conclude. This, he adds, will give New Delhi the opportunity to secure access to raw material, while advancing negotiations on services, investment, and skilled worker mobility. This is because, unlike free trade agreements with manufacturing-heavy countries, Canada's export profile complements India's needs. Of the $4.4 billion worth of imports from Canada, over 76 per cent were essential raw materials and primary commodities, such as lentils ($466 million), yellow peas ($478 million), coking coal ($417 million), potassium chloride fertiliser ($369 million), and petroleum crude ($219 million). All are crucial for India's food security, steel production, and energy needs. India also sourced rough and polished diamonds, wood pulp, newsprint and scrap materials like aluminium and steel. 'Since these imports are largely non-competitive and feed directly into India's industrial supply chains, a trade deal with Canada poses little threat to domestic producers,' Srivastava explains. Agneshwar Sen, Trade Policy Leader, EY India, too, is of the view that an early harvest deal between India and Canada could focus on sectors where complementarities are strong and sensitivities low — like textiles, gems and jewellery, agri-products, critical minerals, and clean energy. 'Handled pragmatically, an India-Canada early harvest deal could also serve as a confidence-building measure to re-establish momentum for broader economic engagement,' Sen says. 'Given Canada's need to diversify trade beyond the US and China, and India's growing role as a manufacturing and services hub, the strategic rationale is sound.' He adds that sectors like textiles, leather footwear, and gems and jewellery — where India has global competitiveness — stand to gain significantly. 'For instance, Canada imports over $3 billion worth of footwear and leather goods annually, but India's share is under 2 per cent,' he says. 'Similarly, while India's gems and jewellery exports exceeded $35 billion last year, less than $300 million were sent to Canada.' Business as usual Meanwhile, despite the tensions, trade between India and Canada hasn't been negatively impacted. During the 2024-25 financial year (FY25), the total bilateral trade in goods between the two countries stood at $8.6 billion. While Canada accounts for less than 1 per cent of India's total exports, its share has been rising. (Overall, India exported goods worth $4.2 billion during FY25, up 9.8 per cent year-on-year. The major exports included medicines, garments, diamonds, electronic goods, chemicals, gems and jewellery, marine products, engineering goods, rice, among others.) Imports from Canada, meanwhile, contracted 2 per cent, to $4.4 billion, during FY25. India's import dependency on Canada, vis-a-vis the rest of the world, is only 0.6 per cent. The trade balance was in favour of Canada, and stood at $0.2 billion. Canada's international trade and investment factsheet shows that the export of services to India grew 55.7 per cent year-on-year, to $14.1 billion in 2023, and was mainly driven by travel spending. The size of services imported from India was much smaller — $3.2 billion in 2023, with a 3.2 per cent contraction. Commercial services accounted for nearly 81 per cent of imports from India. For Canada, India is also a favourable investment destination. According to the external affairs ministry, Canadian pension funds have cumulatively invested over $55 billion in India. More than 600 Canadian companies have a presence in India, and more than 1,000 are actively pursuing business in the Indian market. Indian companies, too, are active in Canada in various sectors: IT, banking, natural resources, financial services, and so on. A deal, even if an interim one, can solidify this engagement, and perhaps also help iron out the creases.
Hindustan Times
03-07-2025
- Business
- Hindustan Times
Delegation of Canadian CEOs will visit India after two years as tension eases
Toronto: After a hiatus of two years due to bilateral tensions, a formal delegation of Canadian CEOs will visit India this winter. India's Prime Minister Narendra Modi (left) and Canada's Prime Minister Mark Carney shake hands during a meeting at the G7 Summit in Kananaskis, Alberta, on June 17. (AP) The last such delegation travelled to India in the summer of 2023, at a time when India and Canada were in the midst of negotiations over an Early Progress Trade Agreement (EPTA). There have been no such visits since then Canadian Prime Minister Justin Trudeau's statement in the House of Commons on September 18, 2023 that there were 'credible allegations' of a potential link between Indian agents and the killing of pro-Khalistan figure Hardeep Singh Nijjar in Surrey, British Columbia, three months earlier. The visit will happen either later this year or early next year, Business Council of Canada (BCC) president and CEO Goldy Hyder said. He, along with a colleague, will travel to India this month to lay the groundwork for the delegation's trip. 'As encouraged by both governments, Canadian and Indian business leaders have remained engaged and continue to work together to strengthen bilateral commercial ties,' he said. A reset has been signalled by both countries, with the bilateral meeting between Canadian Prime Minister Mark Carney and his Indian counterpart Narendra Modi on the margins of the G7 leaders' summit in Kananaskis on June 17. A readout of that meeting issued by the Canadian Prime Minister's Office at the time said, 'They discussed strong and historic ties between our peoples, partnerships in the Indo-Pacific, and significant commercial links between Canada and India – including partnerships in economic growth, supply chains, and the energy transformation.' 'The leaders also discussed opportunities to deepen engagement in areas such as technology, the digital transition, food security, and critical minerals,' it added. 'Our recommendation, particularly in the political environment in which we find ourselves, is it's really important to have friends and the diversification agenda that the (Canadian) government has laid out has to include it (India),' Hyder said. 'As a business council we have good relationships in India, with our counterparts, relationships with governments both federally and state level, and it's very important to keep that drumbeat sustained over a period of time,' he said. CEOs of major Canadian corporates have travelled to India during this period and a couple have even held private meetings with Modi, he said. Despite the troubled diplomatic relationship, trade was ringfenced by both governments. Trade in goods grew from CA$10.74 billion in 2023 to CA$11.30 billion in 2024. At CA$2.35 billion for the first four months of 2025, India's exports to Canada is on track to surpass the 2024 figure of CA$5.93 billion. Prior to the diplomatic row between the two counties, Canada's then Minister of International Trade Mary Ng was scheduled to lead a trade mission to India in October trip was obviously scrapped. However, there is no confirmation at this time whether her successor in that ministry, Maninder Sidhu, will be associated with the forthcoming visit.
