Magazine

Last edition
March-April-2025 2025

Home › Policies & Regulations ›Government Proposes Delegation of ISTS Project Approvals to NCT and CTU

Government Proposes Delegation of ISTS Project Approvals to NCT and CTU

The Ministry of Power has released a draft amendment to the Electricity (Transmission System Planning, Development, and Recovery of Inter-State Transmission Charges) Rules, 2021 to streamline ISTS project approvals by delegating authority to the National Committee on Transmission and Central Transmission Utility within specified cost limits.

March 31, 2025. By Mrinmoy Dey

The Ministry of Power (MoP) has issued a draft amendment to the Electricity (Transmission System Planning, Development, and Recovery of Inter-State Transmission Charges) Rules, 2021.

The amendment proposes to empower the National Committee on Transmission and the Central Transmission Utility with decision-making authority for approving inter-state transmission system (ISTS) projects within cost limits specified by the central government.

The amendment proposes to include a provision in rule 3, in sub-rule 3 of the act for facilitating the above. “Provided further that the Central Government may delegate powers to the National Committee on Transmission and Central Transmission Utility for approving ISTS projects subject to the cost limits specified by the Central Government from time to time,” mentioned the notification.

This delegation of power aims to streamline the approval process and accelerate the expansion of the country's power transmission network. Stakeholders, including government agencies, industry associations, and renewable energy groups, can submit feedback on the amendment by April 26, 2025.

This initiative aligns with the government’s broader efforts to enhance grid reliability and meet growing energy demands through improved transmission planning and infrastructure development.

In fact, the government has been implementing measures to tackle delays being faced in several ISTS projects. MoS Power Shripad Yesso Naik stated in the Rajya Sabha that 14 ISTS projects have been delayed due to prolonged Right-of-Way (Row) issues, primarily driven by demands for higher compensation and delays in forest clearances.

Earlier this month, the government issued supplementary rules for Right of Way (RoW) compensation in ISTS transmission projects, introducing market-based valuation by district committees. Compensation is now 30-60 percent of market value, ensuring fair payouts while enabling timely infrastructure development for India's renewable energy expansion.

Download the attached file

Tags:

Policies & Regulations

Ministry of Power

ISTS rules amendment

National Committee on Transmission

Central Transmission Utility

ISTS project approvals