Modi Govt is planning to extend ISTS waiver for renewable energy projects

In a bid to provide a boost to the solar, wind and other sources of renewable energy production in India, the Narendra Modi Government is planning to extend the Inter State Transmission System (ISTS) waiver it had announced in November last year. The Minister of State for Power (IC), RK Singh informed about the same yesterday evening while addressing at the FICCI Renewable Energy CEOs Council. RK Singh said that the Ministry may consider extending the ISTS waiver for renewable energy projects by at least 6 months.

Addressing at CEOs Interactive Session organized by FICCI Renewable Energy CEOs Council and FICCI Power Committee, RK Singh said that power generation will have to be doubled. He urged the industry to start adding capacity without waiting for bids to come out as RPO penalty will be made more stringent. The government is looking towards strengthening the local manufacturing units for solar instead of depending on neighbouring countries, he added.

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Alluding to reforms in the sector, Singh said that amendments in the Electricity Act are essential to make the sector viable and sustainable. The Minister urged the industry to communicate the importance of these reforms. He added that the sanctity of contracts have to be maintained and this applies to all parties involved, failing to do so will result in blacklisting of companies.  

Speaking on the issue of open bid available only for short term, Singh said that the ministry is working towards a centralized bid system for making coal available for long term without linkage to PPAs. The Minister exhorted the industry to start-up and stand-up for its rights. He added that the government is taking steps to bring back growth in these challenging times and demand will accelerate going forward.

Ranjit Gupta, Chair, FICCI Renewable Energy CEOs Council and Chief Executive Officer, Azure Power said that the reforms in the Electricity Act and Tariff Policy are much needed as they will enable foreign investors to come to India. He added that the industry will push for the government’s initiative ‘Make in India’. Gupta said that the renewable energy sector suffered less during COVID-19 crisis because of the proactive steps taken by the government. He added that the FICCI RE CEOs Council is engaging directly with the states and raising concerns for speedy resolution and mentioned that one such engagement has already taken place with the Energy Minister of Gujarat on June 5, 2020.