Govt waives ISTS charges on new hydro-power projects

To streamline power requirement from renewable energy sources, the government on Friday ordered waiver of inter-state transmission system (ISTS) charges.

ISTS charges are levied on transmission of electricity generated from new hydro-power projects. These charges have been waived for 18 years from the date of commissioning of such projects, official sources informed.

The government had declared hydro-power projects as renewable source of power in March 2019. However, waiver of inter-state transmission charges provided to solar and wind projects had not been extended to hydro power projects, sources informed.

In order to remove this discrepancy and to provide a level-playing field to the hydro projects, the Power Ministry has now decided to extend the waiver of ISTS charges on the transmission of power from new hydro-power projects, for which construction work is awarded and PPA is signed on or before June 30, 2025.




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