MoP issues order for waiver of ISTS charges on transmission of electricity generated from new hydropower projects

The Ministry of Power (MoP) has issued an order for the waiver of inter-state transmission system (ISTS) charges for electricity generated from new hydropower projects for which construction work is awarded and the power purchase agreement (PPA) is signed on or before June 30, 2025. For a hydropower project for which construction work is awarded and PPA is signed between July 1, 2025, and June 30, 2026, 25 per cent of ISTS charges will be applicable. For a project for which construction work is awarded and the PPA is signed between July 1, 2026, and June 30, 2027, 50 per cent of ISTS charges will be applicable, while for those whose construction work is awarded and PPA is signed between July 1, 2027, and June 30, 2028, 75 per cent of ISTS charges will be applicable. Further, 100 per cent ISTS charges will be applicable for hydro projects from July 1, 2028. The waiver/concessional charges will be applicable for a period of 18 years from the date of commissioning of the hydropower plants.