NSEFI Urges Centre to Extend ISTS Waiver Till June 2026 Amid Project Delays

The National Solar Energy Federation of India (NSEFI) has called on the Indian government to urgently extend the waiver on Inter-State Transmission System (ISTS) charges till June 2026, citing unforeseen delays hampering renewable energy projects across the country.

In a letter addressed to the Advisor at the Prime Minister’s Office, NSEFI stressed that without an extension, developers could face a financial hit of nearly INR 5 lakh crore. The federation argued that projects which have achieved financial closure and secured land should be granted exemption from ISTS charges to safeguard their viability.

The appeal comes amid significant delays attributed to the Central Electricity Regulatory Commission (CERC), which have disrupted project timelines and threatened the commercial sustainability of many initiatives. According to NSEFI, many developers had factored the ISTS waiver into their financial and operational plans, making the current deadline a critical concern.

To address the issue, NSEFI has proposed a milestone-based eligibility framework to ensure that only genuinely committed developers benefit from the extended waiver. The federation believes this will support timely execution while maintaining policy integrity, ultimately aligning with India's renewable energy ambitions