EPTA urges extension of ISTS charges waiver for green projects to 2026

Business Standard

23-06-2025

Apex industry body Electric Power Transmission Association (EPTA) on Monday urged the government to safeguard the viability of around 30 GW clean energy projects facing risks from delays beyond the control of developers by extending the Inter-State Transmission System (ISTS) charges waiver till March 2026.
Investments of about Rs 2 lakh crore will be impacted if a relief is not given to the players in the form of extension in the waiver, G P Upadhyaya, the Director General of EPTA said while speaking to the media in the national capital.
The government had announced a waiver for solar and wind projects to be set up and commissioned by June 30, 2025.
Upadhyaya said "around 30 GW green capacity are under advance stages of development across various states. These projects are unlikely to be set up before June this year on account of multiple reasons".
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 over states of Rajasthan, Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil Nadu, Maharashtra among others.
In some places there is issue of land availability, local issues, Great Indian bustard (a bustard is especially found in Rajasthan and Gujarat), he said in reply to a question on reasons for delay in projects.
On a solution, the DG 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 6-9 month window to avail the ISTS waiver benefits." As another alternative, Upadhyaya suggested recommended a more gradual phase-out of the waiver, starting with a 10 per cent withdrawal every 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, thereby allowing RE power to stay competitive and attract more investments in this key sector.
The industry is of the view that the proposed withdrawal at 25 per cent per year will 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, he said.
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