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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
24-06-2025
- Business
- Time of India
Private power firms urge gradual phase-out of green energy transmission waiver
Private sector power transmission companies have sought a graded reduction of incentives for moving renewable energy across states, instead of a steep cut. In a representation to the Centre, the Electric Power Transmission Association (EPTA) urged the government to adopt a more flexible approach to the planned withdrawal of the Inter-State Transmission System (ISTS) waiver. As part of its suggestions, EPTA proposed a milestone-based eligibility framework that would allow projects showing significant progress, but delayed due to external challenges, to continue benefiting from the ISTS waiver . "These projects should be given a few more months to complete construction so that they come under the ambit of the ISTS waiver," an EPTA statement said. The association recommended a more gradual phase-out of the waiver, starting with a 10 per cent withdrawal each year instead of the proposed 25 per cent. Such a calibrated approach would significantly ease the impact of the waiver's withdrawal on the cost of green power, EPTA added.
Time of India
23-06-2025
- Business
- Time of India
Transcos seek gradual weaning of incentive
Private sector power transmission companies have sought a graded reduction of incentives for moving renewable energy across states, instead of a steep cut. In a representation to the Centre, the Electric Power Transmission Association (EPTA) urged the government to adopt a more flexible approach to the planned withdrawal of the Inter-State Transmission System (ISTS) waiver. As part of its suggestions, EPTA proposed a milestone-based eligibility framework that would allow projects showing significant progress, but delayed due to external challenges, to continue benefiting from the ISTS waiver. "These projects should be given a few more months to complete construction so that they come under the ambit of the ISTS waiver ," an EPTA statement said. The association recommended a more gradual phase-out of the waiver, starting with a 10% withdrawal each year instead of the proposed 25%. Such a calibrated approach would significantly ease the impact of the waiver's withdrawal on the cost of green power, EPTA added. Economic Times WhatsApp channel )
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Business Standard
23-06-2025
- Business
- Business Standard
Transmission body seeks flexible ISTS waiver phase-out for RE sector
As India advances towards its ambitious target of 500 GW renewable energy (RE) capacity by 2030, the Electric Power Transmission Association (EPTA), the apex body for transmission companies, has urged the government to adopt a more flexible approach to the planned withdrawal of the Inter-State Transmission System (ISTS) waiver. It has also suggested that the government explore alternative viable options to offer critical relief to renewable energy developers. Since its introduction in 2016, the ISTS waiver—critical to India's green energy transition—has been extended only once and is now slated for phased withdrawal starting July 1, 2025. EPTA has proposed a milestone-based eligibility framework that would allow projects with significant progress, but delayed due to external challenges, to continue availing themselves of the ISTS waiver, G P Upadhyaya, director general of the association, told reporters on Monday. According to EPTA, such projects should be granted a few more months to complete construction so they may qualify under the current waiver regime. Alternatively, the association recommended a more gradual phase-out of the waiver, beginning with a 10 per cent withdrawal every year instead of the proposed 25 per cent. The industry believes that a 25 per cent annual withdrawal would disrupt ongoing projects, jeopardise investments and undermine cost competitiveness, especially for commercial and industrial (C&I) consumers who already pay among the highest electricity tariffs globally. 'Such a calibrated approach would significantly ease the impact of the waiver's withdrawal on the cost of green power, thereby allowing RE power to stay competitive and attract more investments in this key sector,' Upadhyaya said. '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 per cent of required land, and placing key equipment orders—should be granted a six-to-nine-month window to avail themselves of the ISTS waiver benefits,' he added. This request aligns with Power Minister Manohar Lal Khattar's announcement at a press conference earlier this month extending the ISTS waiver on pumped hydro and battery storage projects till June 2028 from the earlier deadline of this June. Among other key issues in the transmission sector, EPTA stressed the critical need to scale up domestic manufacturing of 765 kV HVDC equipment under the production-linked incentive (PLI) scheme, given that European imports are currently fully booked and expensive, while restrictions on Chinese imports continue. The association also highlighted the planned offshore transmission line from the Andaman Islands to Paradip in Odisha under the One Sun, One World, One Grid initiative. This project will help shift power in the islands from fossil fuel-based sources to green energy from the mainland. EPTA further noted India's growing grid strength and its potential for future cross-border connections, including possible links from Andaman to Singapore and from Gujarat to the UAE.
Time of India
23-06-2025
- Business
- Time of India
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.
