News Update

11700 liquor bottles heading for Bihar seized in UPBengaluru to host G20 Energy Transition Working Group MeetingWHO says Covid is still a global emergency + Red Cross says World is horribly not prepared for next pandemicMinisters inaugurate G-20 International Financial Architecture Working Group meetingPak Rupee nosedives to Rs 270 vs US DollarONGC's Sagar Samrat re-dedicated to nation as Mobile Offshore Production Unit17 perish in suicide bomb blast at Pak mosque; Over 82 injuredYadav meets German delegation on exploring pathways to sustainable developmentAdani-gate: LIC to grill Adani’s top managementSame-sex marriage: Delhi HC transfers bunch of cases to SCI-T - Re-opening of assessment u/s 148 is invalidated where assessee is not granted opportunity of personal hearing: HCDelhi going to be soaked for another 12 hours, says Weather DepartmentI-T- Merely because interest of housing loan is claimed by son of the assessee in his computation, it is not enough to make him the owner of the property: ITATNitish Kumar says he would prefer to die rather than tie up with BJPTax fraud: Ethics Committee probe pins down Chairman of Conservative Party; Sunak boots him outI-T- Employees' contribution deposited after respective due date cannot be allowed as deduction is applicable in case of an assessment farmed u/s 143(3) as well for intimation framed u/s 143(1) of Act: ITATEU mulling to brand Iran’s Revolutionary Guards as terroristsI-T- PCIT rightly passed order u/s 263 as failure of AO to examine bank statement in correct perspective had led to under assessment of income :ITATUS anti-trust case may compel Google to hive off Ad business as new companyI-T- Where taxes are shown to have been paid by the payee, no disallowance u/s 40(a)(ia) of the Act was called for in the hands of the payer for default in taxes deduction at source: ITATIsraeli drones target Iranian defence goods complexVAT - refund payable to assessee cannot be held up when time limit for assessment & re-assessment has lapsed & any such proceeding is not pending : HCBoris Johnson says Putin scared him with missile attack threatCus - In view of town seizure, Customs Department failed to lead evidence in support of allegation as to smuggled nature of goods, Revenue is directed to release the goods: CESTATRio Tinto drops radioactive capture in Australian desert; Massive search launchedKisan Vikas Patra Scheme amended - Deposits made from Jan 1, 2023 to double in 10 yrsMega Science Projects: The Economic & Diplomatic gains for India!Packaged Commodities Rules amended - Date of Feb 1 substituted by April 1, 2023Indirect Tax: Expectations from Union Budget 2023
ISTS charges on transmission of electricity waived for 18 years

By TIOL News Service

NEW DELHI, DEC 03, 2022: IN a further step to realise the Government of India's commitment to achieve its power requirement from renewable energy sources, Ministry of Power has issued an order for the waiver of Inter-State Transmission system (ISTS) charges on transmission of electricity generated from new hydro-power projects. The said waiver is already available to solar and wind power projects.

Government has set an ambitious plan to have 500 GW of generation capacity from non-fossil energy based sources by 2030. Hydro power projects, being clean, green and sustainable will be of paramount importance in our clean energy transition journey. They are also essential for the integration of solar and wind power, which are intermittent in nature.

In acknowledgement of the aforesaid inherent qualities of hydro-power, Government of India declared hydro power projects as the renewable source of power in March, 2019, However, waiver of inter-state transmission charges, provided to solar and wind projects had not been extended to hydro power projects.

In order to remove this discrepancy and to provide a level playing field to hydro projects, Ministry of Power in Government of India has now decided to extend the waiver of ISTS Charges on the transmission of power from new hydro power projects, for which construction work is awarded and PPA is signed on or before 30.06.2025.

ISTS charges shall be levied for transmission of power from Hydro Power Projects where construction work is awarded and PPA is signed after 30.06.2025 as per the following trajectory:

S. No.

Award of construction work + Signing of PPA

ISTS charges


01.07.25 to 30.06.26

25% of applicable ISTS charges


01.07.26 to 30.06.27

50% of applicable ISTS charges


01.07.27 to 30.06.28

75% of applicable ISTS charges


from 01.07.28

100% of applicable ISTS charges

The waiver/or concessional charges as shown in table above shall be applicable for a period of 18 years from the date of commissioning of the hydro power plants. The waiver shall be allowed for Inter-state transmission charges only and not losses. The waiver would be made applicable from prospective date.

This step is expected to provide a boost to the hydro sector, which will also help improve India's water security and bring development benefits to hilly states namely North Eastern States, Uttrakhand, Jammu and Kashmir, Himachal Pradesh etc. where most of the hydro potential is located.


TIOL Tube Latest

Mr. S Swaminathan, CEO and Founder, IRIS GST sharing his thoughts at the TIOL Awards 2022 event in November 2022

Ms. Shaifali Arora, Head, Indirect Tax, Vedanta Ltd sharing her thoughts at the TIOL Awards 2022 event.

Ms. Dolly Roy, CFO, Aditya Birla Fashion & Retail Ltd . sharing her thoughts at the the TIOL Awards 2022 event.