The Union power ministry has extended the waiver of ISTS charges for energy storage projects, to June 30, 2028.
This was announced by Manohar Lal, Union power minister, on June 10, 2025, during a press conference highlighting 11 years of transformative growth in the power sector.
This waiver extension will be applicable to battery energy storage system (BESS) projects and pumped storage projects (PSP) commissioned before the said date.
This extension is crucial for meeting India’s growing storage needs and optimising the utilisation of transmission lines, a government release said.
Manohar Lal also announced a new viability gap funding (VGF) scheme approved by the Union power ministry for 30 GWh of BESS capacity. This Rs.5,400-crore VGF scheme is expected to attract Rs.33,000 crore of investment in the BESS segment by 2028. (More details presented in T&D India’s story dated June 10, 2025.)
This VGF scheme will be in addition to a similar 13.2 GWh scheme already underway and in which tendering for 6.7 GWh has been concluded and 3 GWh awarded.
Meanwhile, eight pumped storage projects with aggregate capacity of around 10 GW are currently under implementation, and another two projects worth 2.5 GW are under bidding.
UHVAC transmission lines
The power minister also disclosed that nine transmission lines and ten substations of 1,100kV ultra high voltage alternating current (UHVAC) have been identified for commissioning by 2034. This will be supported by domestic testing facilities that are under development by Central Power Research Institute (CPRI). The UHVAC infrastructure will have a total outlay of around Rs.53,000 crore.
Expanding InSTS grids
With a view to expanding the intrastate transmission system (InSTS) network, steps have been taken to enhance private sector investment. This has been done by expanding the scope of Late Payment Surcharge (LPS) Rules, to now include InSTS projects, in addition to interstate transmission system (ISTS) schemes, the minister said.
Addressing RoW challenges
Manohar Lal said that in a landmark move, the Central government has increased the compensation for land used in laying transmission lines to ease the Right of Way (RoW) issues. Compensation for the tower area has been enhanced from 85 per cent to 200 per cent of the land value, and for the RoW corridor from 15 per cent to 30 per cent, directly linking land value to market rates. Haryana and Delhi have already adopted the new guidelines issued on March 21, 2025, the minister observed.
Featured photograph courtesy of Press Information Bureau (PIB)
