Ministry of Power has issued an order for waiver of Inter-State Transmission System (ISTS) charges on transmission of electricity generated from new hydro-power projects. This waiver was publicised by the Press Information Bureau by a release dated 2nd December, 20222. The waiver is intended as a step towards realising the Government’s commitment to achieve its power requirement from renewable energy sources.
This waiver is valid 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.
Moreover, the said waiver is already available to solar and wind power projects.
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.