SIGN IN SUBSCRIBE

News Update

PLI scheme for electronics manufacturing sees incremental investment of Rs 8,390 CrG20 finance leaders agree to tax super-rich but forum not yet readyDPIIT promotes green logistics industry balancing economic growth and environmentIndia, US ink pact to stymie illegal trafficking of cultural propertyRailways expands tracks by 31,180 kmFroth in Yamuna river: Delhi complains to Centre against UP and HaryanaGovt to enhance reach of Indian Digital Public InfrastructureFormer BJP Minister says BJP has totally failed as Opposition in KarnatakaGovt provides incentives to small tea growersEU penalises 5 countries for infringing budget rulesI-T-Transaction involving transfer of unutilised shares cannot be deemed to be sale of shares so as to attract levy of Long Term Capital Gain u/s 112: ITATChina says Relations with Japan at critical stageST - Once the activity of appellant that is of forfeituring the amount of earnest money is not a declared service, question of retaining said money as consideration for rendering such service becomes absolutely redundant: CESTATEU medicines regulator disapproves Alzheimer’s new drugSC says no restrictions on voluntary name banners along Kanwar route eateriesFM favours debt reduction but sans affecting economic growthKargil Victory Day: PM warns Pak against practising terrorismChina pumps in subsidies worth USD 41 bn into car sectorMisc - Payments made to Government cannot be deemed to be a tax merely because statute provides for their recovery as arrears: SC CBMisc - Royalty not a tax; royalty is contractual consideration paid by mining lessee to lessor for enjoyment of mineral rights & liability to pay royalty arises out of contractual conditions of mining lease: SC CBMisc - Since power to tax mineral rights is provided for in Entry 50 of List II, Parliament cannot use its residuary powers in this subject matter: SC CBCus - Owner of goods has a liability to pay customs duty even after confiscated goods are redeemed on payment of fine - Interest follows: SC
 
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

1.

01.07.25 to 30.06.26

25% of applicable ISTS charges

2.

01.07.26 to 30.06.27

50% of applicable ISTS charges

3.

01.07.27 to 30.06.28

75% of applicable ISTS charges

4.

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.


POST YOUR COMMENTS
   

TIOL Tube Latest

TIOL Tube
Dr. Shailendra Kumar, Chairman, TIOL Knowledge Foundation, addressing the gathering

TOP NEWS


AR not Afar by SK Rahman

VISION 360



Shri Ram Nath Kovind, Hon'ble 14th President of India, addressing the gathering at TIOL Special Awards event.

TII LATEST

TIOLCORPLAWS LATEST