Power Ministry may consider an extension of ISTS waiver beyond 2022
FICCI issued a statement after a CEO’s interactive session with Power Minister R K Singh stating that the power ministry may consider an extension of the ISTS waiver for renewable energy projects beyond December 2022.
On Tuesday, at a CEOs interactive session organised by FICCI, the Union power minister R K Singh said that his power ministry might consider the waiver of Inter-state Transmission System (ISTS) charges for renewable energy projects beyond 2022.
At the start, this waiver was meant for projects that were commissioned till March 31, 2020. However, in November 2019, the ministry extended the deadline of the ISTS waiver to the wind and solar energy projects by nine months.
Thus, all the projects commissioned till December 2022 were made eligible to take benefits of exemption of ISTS charges and losses towards electricity transmission for 25 years.
Waiver Extension
Recently at an Interactive Session organized by FICCI Renewable Energy CEOs Council and FICCI Power Committee, – Power Minister R K Singh stated that the power ministry may consider an extension of the ISTS waiver for renewable energy projects by at least 6 months, according to a statement by FICCI.
In the wake of the COVID-19 pandemic, the projects are expected to get delayed. Thus industry bodies were looking for an extension on the waiver for a year or so – beyond December 2022.
Other Important Points
The statement also mentioned that Singh stressed on doubling the power generation, and advised the industry to start adding capacity – as RPO penalty will be made more severe over the coming days.
Singh also added that instead of depending on neighboring countries, the government is looking forward to strengthening the local solar manufacturing units of solar.
He further stated that the sanctity of contracts must be maintained, and this is applicable for all the involved parties, failure to do so may result in blacklisting of companies.
Talking about the issue of open bid for the short term only, Singh said that his Ministry is working on the centralization of the bid system so as to make coal available for longer periods without any link to PPAs (Power Purchase Agreements).
The minister urged the industry to start-up and stand-up for its rights. He also assured the industry that in these challenging times, the government is taking every step to bring back growth and to accelerate demands.
FICCI Supported Government’s Viewpoint
Ranjit Gupta, chairman, FICCI Renewables CEOs Councils, chief executive officer Azure Power, FICCI said that during the COVID-19 crisis the renewable energy sector has suffered less because of the government’s proactive steps.
He further stated that the FICCI RE Council of CEOs explicitly communicates with states and raises concerns over the accelerated resolution and stated that one such engagement had already occurred with the Gujarat Energy Minister on 5 June 2020. He also added that the industry will thrust for the government initiative ‘Make in India’.
Vipul Tuli, Chairman of the FICCI Power Committee and Sembcorp Energy India’s managing director, has said that in power sector reforms have been swift, fast, and helpful. In response to the efforts the Government has made, the industry is also moving forward, he added
Tuli also emphasized that liquidity is a challenge for the industry, highlighting sector problems. Other issues are the absence of long-term bids and the challenges for the power sector of environmental equipment.
While on the other hand, Dilip Chenoy, FICCI Secretary-General, stated that the industry will work with the government to address the perception issue and to honor companies’ contracts. He also stated that the industry will communicate with stakeholders via articles to highlight the need for reforms in the Electricity Act.
