Energy, Infrastructure & Natural Resources Law Corner Bulletin (July-September 2026)
Authors
Introduction
The third quarter of 2026 featured significant legal and regulatory developments across India’s energy, natural resources, infrastructure, environment and maritime sectors, reflecting a continued policy focus on energy security, sustainability, industrial competitiveness and regulatory modernisation.
In the energy sector, key developments included the release of the draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (“SHANTI”) Rules and Regulations, the introduction of a comprehensive cybersecurity framework for the power sector, new security clearance requirements for renewable energy projects in border areas, and several measures relating to Approved List of Models and Manufacturers (“ALMM”) compliance, renewable energy manufacturing and project implementation.
The natural resources sector witnessed important regulatory developments, including the notification of the Mineral Exchange Rules, 2026, introducing a framework for the establishment and operation of mineral exchanges in India.
Policy and regulatory reforms were also introduced in the environmental sector, including environmental clearance reforms, revised greenhouse gas emission intensity targets, and new waste management guidelines. The period also witnessed the launch of the National Coastal Mission 2.0 to strengthen climate-resilient coastal management and promote sustainable Blue Economy growth.
Maritime reforms were introduced under the Merchant Shipping framework, including new rules relating to vessel registration, carriage of cargoes and oil fuels, limitation of liability for maritime claims, and compensation mechanisms for oil pollution damage.
Judicial and regulatory pronouncements further provided important guidance on electricity regulation, transmission connectivity, and contractual rights, contributing to greater regulatory certainty across key sectors. This edition of the Energy, Infrastructure and Natural Resources Law Corner Bulletin provides a consolidated overview of these developments for the months of July - September 2026.
Key Regulatory Updates
Department of Atomic Energy
Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Rules, 2026 dated August 14, 2026 (Link)
The Department of Atomic Energy (the “DAE”) released the draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Rules, 2026 (the “Draft Rules”) for public comments on August 14, 2026, under Section 84 and other enabling provisions of the SHANTI Act, 2025. Rule 3 of the Draft Rules establishes a composite licence for nuclear power plants and reactors covering building, ownership, operation and decommissioning. Rule 5 of the Draft Rules introduces an in-principle approval permitting technology negotiations and land acquisition before finalisation of the site or technology. Rules 6-8 of the Draft Rules prescribe the principal licensing criteria relating to site suitability, technology/design acceptability and financial, managerial and technical capability. Separate licensing frameworks are prescribed under Rules 10-12 of the Draft Rules for nuclear fuel fabrication, Rules 13-16 of the Draft Rules for uranium and thorium mining, Rules 17-19 of the Draft Rules for milling and ore processing, Rules 20-23 of the Draft Rules for manufacture of radiation sources, and Rules 24-27 of the Draft Rules for import, export, acquisition and transportation of nuclear or radioactive material, equipment and technology. Rule 28 of the Draft Rules exempts specified R&D activities that do not involve source, fissile or radioactive material, subject to peaceful-use self-certification.
Rules 76-77 of the Draft Rules provide for nuclear-damage liability and insurance/financial security, while Rule 108 of the Draft Rules and 110-112 of the Draft Rules establish liability/spent-fuel funds and decommissioning financial security. Rule 114 of the Draft Rules provides for blacklisting consequences following licence cancellation or plant abandonment. The Draft Rules establish that a licence serves as a regulatory prerequisite for undertaking nuclear activities, rather than constituting an operating permit in itself.
Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Regulations, 2026 dated August 14, 2026 (Link)
The Atomic Energy Regulatory Board (“AERB” or the “Board”) released the draft SHANTI Regulations, 2026 (the “Draft Regulations”) for public comments on August 14, 2026, under Section 85 and other enabling provisions of the SHANTI Act, 2025. The Draft Regulations establish the safety authorisation framework applicable after licensing under the Draft Rules. Schedule I identifies four categories requiring safety authorisation for (i) nuclear power plants and reactors, including fusion reactors, (ii) other nuclear facilities and plants, (iii) uranium and thorium mines, and (iv) radiation facilities. Certain lower-hazard practices require only registration, while the Board may exempt practices involving negligible exposure risk.
For nuclear power plants and reactors, the framework requires Design Approval, followed by safety authorisations for siting, construction, commissioning, operation and decommissioning. Design Approval and siting may be reviewed concurrently, but Design Approval must precede siting authorisation. Regulation 42(2) of the Draft Regulations permits composite applications covering multiple stages, although the applicable fees remain cumulative. Regulations 45(9) and 47(4) of Draft Regulations permit the Board to prescribe regulatory hold points, including first concrete pour and first fuel loading/approach to criticality, requiring further written permission before work proceeds. Regulation 50(1) of Draft Regulations provides that a safety authorisation is valid for ten years and cannot exceed the underlying licence period, while Regulation 50(3) of Draft Regulations provides for renewal of Design Approval subject to then-current requirements. Regulation 35 of Draft Regulations requires separate waste authorisation, and Regulation 30(c) of Draft Regulations links radiation-facility procurement approval to specified financial-security requirements. Regulation 55 of Draft Regulations provides for suspension, cancellation or modification following specified grounds and procedural safeguards.
License for export/ Import of ‘Nuclear Grade Graphite’ (0A302) and ‘Deuterium & Heavy Water’ (0A301) for nuclear activities dated July 07, 2026 (Link)
The DAE published on its official website on July 7, 2026, an Office Memorandum dated June 25, 2026, clarifying the licensing framework governing the export and import of Deuterium & Heavy Water (0A301) and Nuclear Grade Graphite (0A302) under Category ‘0’ of the Special Chemicals, Organisms, Materials, Equipment and Technologies (“SCOMET”) list, which constitutes India’s export control framework for sensitive and strategic items (the “Memorandum”). The Memorandum, issued pursuant to DGFT Notification No. 10/2015-2020 dated June 11, 2020, supersedes the DAE’s earlier Office Memorandum dated October 7, 2020. The DAE has clarified that licences for the export or import of the aforesaid items will be issued under the Atomic Energy (Working of the Mines, Minerals and Handling of Prescribed Substance) Rules, 1984, only where such materials are intended for use in a nuclear reactor or for other nuclear activities. It further provides that no licence will be issued where Deuterium & Heavy Water or Nuclear Grade Graphite are proposed to be exported or imported for non-nuclear activities, thereby restricting DAE approval exclusively to nuclear-related end-use applications.
Ministry of Home Affairs
Ministry of Home Affairs Guidelines for Obtaining National Security Clearance for Solar/Wind/Hybrid Projects in Border Areas dated July 3, 2026 (Link)
The Ministry of Home Affairs ("MHA") has issued Guidelines for Obtaining National Security Clearance for Solar/Wind/Hybrid Projects in border areas to establish a uniform framework for security approvals for renewable energy projects near the Line of Control, Line of Actual Control, and international borders (the “Guidelines”). The Guidelines apply to projects located within 50 km of the border, prohibit any project activity within 1 km, require MHA security clearance for projects between 1 km and 50 km, and additionally require a Ministry of Defence No Objection Certificate for projects within 20 km. Applications must be submitted through the Ministry of New and Renewable Energy ("MNRE"), which will obtain the necessary approvals before communicating its decision. Projects involving foreign investment must separately comply with the Foreign Direct Investment framework. The Guidelines also impose operational and security conditions, including restrictions on land transfers to foreign entities and engagement of personnel from certain neighbouring countries without Central Government approval, mandatory employee verification, deployment of security measures such as anti-drone systems, and compliance with directions issued by local authorities and border security agencies. Accommodation facilities must be located at least 5 km from the border, while certain project-related civil infrastructure is subject to prescribed height restrictions based on its distance from the border. The Guidelines are effective immediately, and any clarification issued by the MHA will be final.
Central Electricity Authority
Advisory on Adoption of New Technology Options in Forest Areas to Reduce Right of Way Requirements dated July 30, 2026 (Link)
The CEA issued an advisory on encouraging transmission utilities and other stakeholders to adopt improved tower configurations and advanced conductor technologies for transmission lines proposed in forest areas. It aims to facilitate a reduction in the Right of Way (“RoW”) requirements for transmission corridors, thereby minimising forest land diversion and reducing the environmental impact associated with transmission infrastructure development. The CEA has requested all transmission licensees, developers and other stakeholders to ensure compliance with the revised RoW requirements while planning and executing transmission projects in forest areas.
Central Electricity Authority (Cyber Security in Power Sector) Regulations, 2026 dated July 31, 2026. (Link)
The CEA has issued the Central Electricity Authority (Cyber Security in Power Sector) Regulations, 2026 on July 31, 2026 (the "Cyber Security Regulations") under the provisions of the Electricity Act, 2003. The Cyber Security Regulations establish a comprehensive cyber security framework for the Indian power sector and prescribe governance, operational, technical and compliance requirements for entities operating Information Technology ("IT") and Operational Technology ("OT") systems associated with the interconnected power system. The Cyber Security Regulations apply to generating companies, captive generating plants, energy storage system operators with an installed capacity of 50 MW and above, transmission and distribution licensees, the National Load Despatch Centre ("NLDC"), Regional Load Despatch Centres ("RLDCs"), State Load Despatch Centres ("SLDCs"), power exchanges and other entities owning, operating or managing OT infrastructure and connected IT systems within the power sector. They require every applicable entity to establish a robust cyber security governance structure through the appointment of a Chief Information Security Officer ("CISO") and an Alternate CISO, the creation of a dedicated Information Security Division operating on a 24x7 basis, and the adoption of a formally approved Cyber Security Policy and Cyber Crisis Management Plan. The Cyber Security Regulations establish detailed cyber incident reporting, audit and compliance requirements. Cyber security incidents must be reported to the Computer Security Incident Response Team-Power ("CSIRT-Power") and CERT-In within 6 (six) hours of detection, while incidents classified as cyber sabotage affecting critical systems must be reported within twenty-four hours. Entities are further required to conduct annual cyber security audits, perform vulnerability assessments and penetration testing prior to commissioning new critical systems, maintain ISO/IEC 27001 certification or equivalent certification standards and undertake annual self-audits to assess regulatory compliance.
Central Electricity Regulatory Commission
Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) (Third Amendment) Regulations, 2026 dated August 25, 2026 (Link)
The Central Electricity Regulatory Commission (“CERC”) issued the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) (Third Amendment) Regulations, 2026, introducing amendments to the existing deviation settlement framework applicable to renewable energy projects and energy storage systems. The amendments provide that deviation charges applicable to Wind-Solar Sellers will be treated at par with those applicable to General Sellers in certain cases. Specifically, this treatment will apply to projects awarded through a bidding route with tendering or bid submission dates on or after January 1, 2027, and to other projects achieving commercial operation on or after January 1, 2029. The amendments also introduce specific provisions for standalone Energy Storage Systems (“ESS”). In the case of standalone ESS projects that are pumped hydro storage plants, deviation charges will be computed in accordance with the energy charge rate specified under the CERC (Terms and Conditions of Tariff) Regulations, 2024, as amended from time to time. Further, infirm power injected into the grid by a standalone ESS from the date of first synchronization until successful completion of the trial run will be compensated at the normal rate of deviation charges applicable for each time block, subject to a cap of INR 2.00/kWh. The amendment retains the existing late payment surcharge of 0.04% per day in cases of delayed payment and reinforce the existing recovery mechanism permitting encashment of the defaulting entity's Letter of Credit, which must subsequently be replenished within 3 (three) days.
Ministry of New And Renewable Energy
Updated List-I under ALMM order for Solar PV Modules dated July 06, 2026 (Link)
MNRE issued Revision XLIX of ALMM (“Approved List of Models and Manufacturers”) List-I on July 06, 2026, incorporating the enlistment of several new domestic solar PV module manufacturers, approval of additional module models, and enhancement of manufacturing capacities for existing manufacturers. The revision is largely driven by the inclusion of high-efficiency Bifacial N-Type TOPCon module technologies and further expands India's domestic solar manufacturing base, alongside model and capacity additions for existing manufacturers. These updates increase the range of ALMM-compliant modules available for projects where ALMM compliance is mandated by the Government of India.
Delay in implementation of renewable power projects on account of disruptions arising from the West Asia situation (Link)
MNRE advised Renewable Energy Implementing Agencies (“REIAs”), State Governments, Union Territory Administrations and their agencies to consider force majeure-based requests for extension of timelines submitted by renewable power developers affected by disruptions arising from the ongoing West Asia situation. The circular refers to the Office Memorandum dated April 29, 2026 issued by the Department of Expenditure, Ministry of Finance, which clarified that the ongoing West Asia situation should be treated as a "war" event for the purposes of force majeure under government contracts. Accordingly, where contractual obligations have been directly or consequentially impacted by such disruptions, procuring entities may grant extensions for obligations due on or after February 28, 2026, for a period of 2 (two) to 4 (four) months without imposing any cost or penalty, subject to a case-by-case assessment. It clarifies that force majeure relief would be available only where the concerned party was not in default as of February 27, 2026, and only in respect of non-performances directly attributable to disruptions caused by the prevailing West Asia situation. Contractual obligations are required to resume upon expiry of the extension period.
Clarification with respect to Amendment to Revised Guidelines for installation of prototype wind turbine models dated July 14, 2026 (Link)
The MNRE issued an Office Memorandum in relation to the amendment to the Revised Guidelines for Installation of Prototype Wind Turbine Models notified on June 25, 2026 (the “Memorandum”). The Memorandum specifies that the installation of prototype wind turbine models for commercial deployment may be undertaken only after the relevant wind turbine model has been included in the Approved List of Models and Manufacturers (Wind) (“ALMM (Wind)”). It further provides that prototype wind turbine models may continue to be installed and commissioned for testing purposes prior to their enlistment in the ALMM (Wind), subject to compliance with Clause 5 of the Revised Guidelines for Installation of Prototype Wind Turbine Models issued on June 12, 2025. Accordingly, while prototype wind turbine models may be tested before obtaining ALMM (Wind) approval, their deployment in commercial projects is permitted only after inclusion in the ALMM (Wind) list.
Office Memorandum for No Blanket Extension of ALMM List-II with Limited Extension Window till December 31, 2026 - dated July 18, 2026 (Link)
Through an Office Memorandum, the MNRE clarified that there will be no blanket extension of the requirement for Net-Metering and Open Access Renewable Energy projects to comply with ALMM List-II (solar PV cells) beyond June 01, 2026. However, to facilitate a smooth transition and protect ongoing investments, MNRE has provided a limited extension window, allowing such projects to be commissioned with exemption from ALMM List-II requirements until December 31, 2026. Compliance with ALMM List-I (solar PV modules) continues to remain mandatory.
Clarification on Applicability of ALMM List-II for Solar PV Cells dated August 4, 2026 (Link)
Through an Office Memorandum, the MNRE clarified the applicability of the ALMM List-II for solar PV cells across various categories of solar projects (the “Memorandum”). The Memorandum grants exemptions from ALMM List-II requirements for: (i) projects awarded through bidding where the last date of bid submission was on or before August 31, 2025 (subject to specified conditions); (ii) net-metering and open access projects commissioned on or before December 31, 2026; (iii) certain rooftop solar projects on government buildings, depending on the applicable bidding timeline or commissioning date; and (iv) behind-the-meter captive consumption projects, subject to the nature of the consumer and commissioning timelines. The Memorandum further clarifies that compliance with ALMM List-I for solar PV modules continues wherever applicable and reiterates that ALMM-related orders do not affect Domestic Content Requirement obligations under MNRE schemes, which remain governed by the relevant scheme-specific guidelines and notifications.
Compliance with Cybersecurity Requirements under ALMM (Wind) dated August 20, 2026 (Link)
The MNRE has called upon all OEMs enlisted under the ALMM-Wind to furnish their compliance status with the cybersecurity requirements introduced under the amendment to the ALMM (Wind) Procedure dated July 31, 2025. The requirements mandate that all wind turbine-related data be stored and maintained within India, prohibit the transfer of real-time operational data outside India and require operational control of wind turbines to be exercised exclusively from facilities located within India. All OEMs have been directed to submit compliance details along with documentary evidence to MNRE by August 31, 2026, following which the Ministry may undertake random checks and inspections to verify compliance.
Ministry of Petroleum and Natural Gas
Natural Gas (Supply Regulation) Amendment Order, 2026 dated July 4, 2026 (Link)
The Ministry of Petroleum and Natural Gas (the "MoPNG") notified the Natural Gas (Supply Regulation) (Amendment) Order, 2026 (the "Amendment Order") to amend the Natural Gas (Supply Regulation) Order, 2026 (the "Principal Order"). The Amendment Order withdraws the temporary supply regulation framework introduced under the Principal Order, which had been issued to ensure equitable allocation and continued availability of natural gas for priority sectors following disruptions in liquefied natural gas (LNG) shipments through the Strait of Hormuz. The Amendment Order omits the provisions of the Principal Order relating to priority sector-wise gas allocation, gas redistribution from non-priority sectors, pooled gas pricing, directions to gas producers, marketers and pipeline operators, the overriding effect on existing gas sale agreements and information reporting requirements, thereby restoring the pre-existing regulatory framework governing the supply and distribution of natural gas.
Petroleum Products (Maintenance of Production, Storage and Supply) Amendment Order, 2026 dated August 13, 2026 (Link)
The Petroleum Products (Maintenance of Production, Storage and Supply) Amendment Order, 2026 amends the Petroleum Products (Maintenance of Production, Storage and Supply) Order, 1999 by introducing a new framework for monitoring and enhancing domestic Liquefied Petroleum Gas (“LPG”) production. It requires refineries and upstream oil companies to maintain adequate infrastructure for the storage, transportation and evacuation of LPG and to adopt feasible technological measures to maximise LPG production. The amendment also empowers the Central Government, either directly or through the Centre for High Technology or another authorised agency, to direct oil refining, marketing and upstream companies to increase LPG production in the public interest to ensure adequate availability, equitable distribution and fair pricing. Non-compliance with such directions is punishable under the Essential Commodities Act, 1955. Further, the amendment inserts a Schedule specifying the maximum LPG production potential of refineries and upstream oil companies, with a total notified production potential of 63.81 thousand metric tonnes per day. The Schedule is to be updated twice annually to reflect changes in production capacities and related infrastructure.
Petroleum and Natural Gas Regulatory Board
Petroleum and Natural Gas Regulatory Board (Affiliate Code of Conduct for Entities Engaged in Marketing of Natural Gas and Laying, Building, Operating or Expanding Natural Gas Pipeline) Amendment Regulation, 2026 dated July 8, 2026 (Link)
The Petroleum and Natural Gas Regulatory Board (the "PNGRB") notified the Petroleum and Natural Gas Regulatory Board (Affiliate Code of Conduct for Entities Engaged in Marketing of Natural Gas and Laying, Building, Operating or Expanding Natural Gas Pipeline) Amendment Regulations, 2026 (the "Amendment Regulations") to amend the Petroleum and Natural Gas Regulatory Board (Affiliate Code of Conduct for Entities Engaged in Marketing of Natural Gas and Laying, Building, Operating or Expanding Natural Gas Pipeline) Regulations, 2008 (the "Principal Regulations"). The Amendment Regulations omit Regulation 5A of the Principal Regulations, which mandated the legal separation of entities engaged in both natural gas marketing and transportation activities. By deleting Regulation 5A, the Amendment Regulations remove the requirement for entities undertaking both natural gas marketing and transportation through common carrier or contract carrier pipelines to operate their transportation business through a separate legal entity. Consequently, the corresponding explanatory memorandum to Regulation 5A has also been omitted from the Principal Regulations.
The Petroleum and Natural Gas Regulatory Board (Codes of Practices for Emergency Response and Disaster Management Plan) Amendment Regulations, 2026 dated August 7, 2026 (Link)
The Petroleum and Natural Gas Regulatory Board (Codes of Practices for Emergency Response and Disaster Management Plan (ERDMP)) Amendment Regulations, 2026 (the “Amendment Regulations”) amend the Petroleum and Natural Gas Regulatory Board (Codes of Practices for Emergency Response and Disaster Management Plan (ERDMP)) Regulations, 2010 (the “Principal Regulation”). The Amendment Regulations require entities involved in major incidents to explain lapses or violations that contributed to the incident, constitute an internal committee to fix responsibility and accountability, including at senior management levels, and take disciplinary or administrative action against those found responsible. The regulations also mandate implementation of incident investigation recommendations, submission of Action Taken Reports to the Petroleum and Natural Gas Regulatory Board, and payment of compensation in cases of fatalities or permanent disabilities, with at least 25% of the compensation to be released within one month. In addition, the amendments introduce certain operational refinements relating to incident classification, incident management roles, siren codes, communication protocols, and medical facility requirements.
Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for Petroleum Installations) Amendment Regulations, 2026 dated August 17, 2026 (Link)
The Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for Petroleum Installations) Amendment Regulations, 2026 (the “Amendment Regulation”) amend the Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for Petroleum Installations) Regulations, 2020 (the “Principal Regulations”) by introducing a new Part L on Fire & Emergency Response Augmentation (FERA) for petroleum installations classified as “Extreme Risk” locations. The Amendment Regulation mandates enhanced firefighting and emergency response infrastructure, specialised manpower, shared emergency response arrangements for qualifying clusters, and stricter audit and compliance requirements for installations exceeding prescribed storage thresholds. It also requires emergency response to be initiated within 30 (thirty) minutes of a fire, leak or spill incident and aims for fire control or extinguishment within 65 (sixty five) minutes, with the objective of preventing incidents from escalating into Level-III emergencies with off-site consequences.
Ministry of Mines
Mineral Exchange Rules, 2026 dated June 30, 2026 (Link)
The Mineral Exchange Rules, 2026 establish a comprehensive regulatory framework for the creation and operation of mineral exchanges in India. They provide for the registration, governance, ownership structure and functioning of mineral exchanges, which are intended to facilitate transparent, efficient and delivery-based trading of minerals through electronic platforms. They prescribe eligibility criteria, including a minimum net worth of INR 50,00,00,000 demutualised ownership structures and robust governance requirements involving independent directors. The rules also introduce detailed provisions on price discovery, clearing and settlement, risk management, market surveillance, data reporting, cybersecurity and information technology systems. Further, they prohibit market abuse practices such as insider trading, cartelisation, circular trading and market manipulation, while empowering the Indian Bureau of Mines to oversee exchanges, conduct inspections and investigations, suspend contracts, and revoke registrations for non-compliance.
Mines and Minerals (Development and Regulation) Amendment Act, 2026 dated August 17, 2026 (Link)
The Mines and Minerals (Development and Regulation) Amendment Act, 2026 seeks to strengthen the Central Government's oversight of mineral resources by expanding the scope of the Mines and Minerals (Development and Regulation) Act, 1957 (the “Act”) to cover not only mines but also mineral-bearing lands. A key objective of the amendment is to address issues relating to the taxation of mineral rights and mineral-bearing lands by States. To this end, the amendment inserts a new Section 9D, which prohibits States from imposing any tax, cess or similar levy on mineral rights or mineral-bearing lands except in accordance with conditions and restrictions prescribed by the Central Government. The amendment further provides that any such State levy that had not been recovered or deposited before the Act's commencement will be treated as invalid, although amounts already collected will not be refunded.
Ministry of Coal
Coal Mines (Special Provisions) Adjudication of Penalties Rules, 2026 dated July 31, 2026 (Link)
The Ministry of Coal (the “MoC”), through the Coal Mines (Special Provisions) Adjudication of Penalties Rules, 2026 has operationalised the adjudication mechanism introduced under the Coal Mines (Special Provisions) Act, 2015 (the “Act”) for addressing contraventions of the Act. The rules establish a comprehensive framework governing the initiation of inquiries, issuance of show cause notices, conduct of hearings, adjudication of violations and imposition of penalties by the designated adjudication authority. The rules empower the adjudication authority to initiate proceedings either suo motu or upon receipt of complaints or reports, seek information and records, require attendance of relevant persons, and obtain technical or inspection reports from government agencies and expert bodies.
Appointment of Nominated Authority as Adjudication Authority under the Coal Mines (Special Provisions) Act, 2015 dated September 9, 2026 (Link)
The MoC has appointed the Nominated Authority under Section 6 of the Coal Mines (Special Provisions) Act, 2015 (the "Act") as the Adjudication Authority under Section 24A of the Act. Pursuant to Section 24A, the Adjudication Authority is responsible for holding inquiries and imposing penalties in relation to contraventions under Section 23(2) and Section 24 of the Act.
Coal Ministry Aligns Existing Regulatory Regimes with the MMDR Penalty Framework dated September 9, 2026
The MoC, through three amendment notifications, has aligned the penalty provisions under the Coal Blocks Allocation Rules, 2017, Mineral Concession Rules, 1960, and Colliery Control Rules, 2004 with the adjudication framework introduced under Sections 25A and 25B of the Mines and Minerals (Development and Regulation) Act, 1957. The amendments provide that contraventions of these rules will be subject to penalties in accordance with the Act and the Mines and Minerals Adjudication of Penalties Rules, 2026, thereby establishing a uniform enforcement mechanism across these regulatory frameworks.
Ministry of Environment, Forest and Climate Change
Amendment of EIA Notification dated July 13, 2026 (Link)
The MoEFCC notified amendments (the "EIA Amendment Notification") to the Environment Impact Assessment Notification, 2006 (the “EIA Notification”). The EIA Amendment Notification introduces structural and procedural changes to the constitution and functioning of the Expert Appraisal Committees (the "EACs"), State Environment Impact Assessment Authorities (the "SEIAAs") and State Expert Appraisal Committees (the "SEACs") to ensure continuity and expedite the environmental clearance process. The EIA Amendment Notification extends the tenure of SEIAAs and SEACs from three to four years, mandates initiation of their reconstitution six months prior to expiry, and provides for the constitution of Standing Authorities on Environment Impact Assessment (the "SAEIA") and Standing Committees on Environment Impact Appraisal (the "SCEIA") to function during periods when the SEIAA or SEAC is non-functional. It also revises the eligibility criteria, tenure and removal provisions for members of the EACs, SEIAAs and SEACs, and updates Appendix VI of the EIA Notification to streamline the constitution and functioning of these bodies.
Greenhouse Gases Emission Intensity Target Amendment Rules 2026 dated September 7, 2026 (Link)
The MoEFCC, through the Greenhouse Gases Emission Intensity Target (Amendment) Rules, 2026 dated September 7, 2026, has amended the Greenhouse Gases Emission Intensity Target Rules, 2025 issued under the Carbon Credit Trading Scheme, 2023. The amendment revises the greenhouse gas (GHG) emission intensity targets applicable to obligated entities in the petroleum refinery and textile sectors by replacing the schedules notified in January 2026. The revised schedules prescribe facility-specific baseline emission intensity values and reduction targets for the compliance years 2025-26 and 2026-27, covering major refineries and textile units across various sub-sectors. The revised targets will be used to assess compliance under the carbon credit framework and are intended to drive sector-specific emission reductions while supporting the implementation of India’s carbon market mechanism and broader climate goals.
Amendment to the EIA Notification, 2006 Rationalising Validity of Environmental Clearances for Ports, Harbours, Break Waters and Dredging dated September 21, 2026 (Link)
The MoEFCC has amended the Environment Impact Assessment Notification, 2006 to extend the validity of prior Environmental Clearances for ports, harbours, breakwaters and dredging projects from 10 (ten) years (extendable by one year) to 20 (twenty) years, recognising the long gestation and phased development of such projects. The validity may be extended by a further 5 (five) years, and in deserving cases by an additional 5 years, subject to review by the relevant Expert Appraisal Committee (EAC) or State Level Expert Appraisal Committee (SEAC) and incorporation of any necessary environmental safeguards in the Environmental Management Plan. The amendment also extends certain procedural provisions previously applicable to mining projects to these port-related projects and makes consequential changes to the EIA framework.
Implementation Guidelines for National Coastal Mission 2.0 (Link)
The MoEFCC has approved the National Coastal Mission (“NCM 2.0”) as a Central Sector Scheme for the period 2025-26 to 2030-31 with a total outlay of INR 767 crore, aimed at strengthening climate-resilient coastal management, conserving coastal and marine ecosystems, and promoting sustainable Blue Economy growth. It subsumes the earlier National Coastal Mission and seeks to enhance ecological resilience while supporting livelihoods and sustainable development across India’s coastal regions. The scheme covers all 9 (nine) coastal States and 4 (four) coastal Union Territories. NCM 2.0 is structured around five thematic components, namely, Climate Resilient Blue Economy Growth, Coastal Vulnerability and Risk Reduction, Climate Change Adaptation with Mitigation Co-benefits, Capacity Building and Outreach, and Project Management and committed liabilities. Key interventions include preparation and implementation of Integrated Coastal Zone Management Plans and Coastal Marine Spatial Plans, restoration of mangroves, coral reefs and other coastal ecosystems, protection of marine biodiversity including dolphins, reduction of marine and coastal pollution, and development of green and climate-resilient infrastructure in vulnerable coastal areas.
Central Pollution Control Board
Guidelines for Recycling of Waste Batteries (Lead Acid and Lithium-ion) dated July 15, 2026 (Link)
The Central Pollution Control Board (the "CPCB") issued the Guidelines for Recycling of Waste Batteries (Lead Acid and Lithium-ion) (the “Recycling Guidelines”) under Rule 11(17) of the Battery Waste Management Rules, 2022, prescribing environmentally sound procedures for the collection, storage, transportation, dismantling, processing and recycling of waste batteries. The Recycling Guidelines establish a comprehensive battery recycling framework covering the entire recycling value chain, including collection, transportation, storage, sorting, dismantling and recovery of valuable materials, and apply to all stakeholders involved in the battery recycling ecosystem, including producers, dealers, collection centres, refurbishers and recyclers. The Recycling Guidelines prescribe detailed technical and operational requirements for lead-acid and lithium-ion battery recycling facilities, including mandatory infrastructure, pollution control systems, effluent treatment plants, worker safety measures, emission standards and operational procedures.
Guidelines for Collection, Handling, Storage, and Transportation of Waste Batteries dated July 15, 2026 (Link)
The CPCB has issued the Guidelines for Collection, Handling, Storage, and Transportation of Waste Batteries (the "Battery Collection and Transportation Guidelines") pursuant to Rule 11(17) of the Battery Waste Management Rules, 2022, prescribing environmentally sound procedures for the collection, handling, storage and transportation of waste batteries. The Battery Collection and Transportation Guidelines apply to producers, recyclers, refurbishers, collection centres and transporters dealing with all categories and chemistries of waste batteries, and prescribe comprehensive requirements governing collection mechanisms, establishment and operation of collection centres, storage practices, transportation protocols, emergency response, record maintenance and regulatory compliance. It require producers to establish accessible collection mechanisms, including take-back, buy-back and deposit refund schemes; permit only producers, recyclers and refurbishers to establish collection centres subject to obtaining the requisite consents and authorisations from the concerned State Pollution Control Boards (the "SPCBs") or Pollution Control Committees (the "PCCs"); prescribe detailed infrastructure, fire safety, storage segregation and handling requirements, including chemistry-specific storage conditions for different battery types; prohibit dismantling or processing activities at collection centres; mandate transfer of waste batteries only to authorised recyclers or refurbishers; require transportation in accordance with the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016; and prescribe obligations relating to inspection, accident reporting, record maintenance and periodic regulatory filings.
Ministry of Commerce and Industry
Gas Cylinders (Third Amendment) Rules, 2026, dated September 21, 2026 (Link)
The Ministry of Commerce and Industry (Department for Promotion of Industry and Internal Trade) has notified the Gas Cylinders (Third Amendment) Rules, 2026, (“Amendment Rules”) amending the Gas Cylinders Rules, 2016 to establish a regulatory framework for the use of Compressed Natural Gas (“CNG”) and Compressed Biogas (“CBG”) Mobile Refuelling Units (“MRUs”). The Amendment Rules permits the dispensing of CNG and CBG through approved mobile refuelling units to specified vehicles and equipment, including vehicles operating in mines and ports, railway locomotives, inland and maritime vessels, and certain heavy machinery that cannot be brought to conventional fuel dispensing stations. It also prescribes ownership, licensing, approval, and operational requirements for MRUs, including the roles of City Gas Distribution companies and licensed operators. It further introduce detailed safety and compliance standards relating to emergency shut-down systems, approved storage and dispensing equipment, safety distances, leak prevention measures, emergency response planning, operator training, and record-keeping requirements. The framework is intended to facilitate the safe deployment of mobile CNG and CBG refuelling infrastructure, improve fuel accessibility for hard-to-reach sectors, and support the adoption of cleaner fuels while ensuring adherence to prescribed safety and regulatory standards.
National Highways Authority of India
Modification in Eligibility and Qualification requirements for Hybrid Annuity Model (HAM) Projects dated August 9, 2026 (Link)
The NHAI has adopted MoRTH's revised eligibility and qualification requirements for Hybrid Annuity Model (“HAM”) projects. The amendment is aimed at improving quality and accountability in highway construction following concerns over serious structural failures caused by construction defects. Under the revised criteria, a bidder (including any consortium member) will be disqualified from participating in HAM project bids if a catastrophic failure of a highway or structure due to construction defects has occurred in any of its ongoing or completed projects during the preceding 2 (two) years, provided such failure has been notified by the Ministry. Bidders must also submit an undertaking confirming that no such catastrophic failure has occurred.
Implementation of MoRTH Milestones for Land Acquisition and Forest & Wildlife Clearances dated September 23, 2026 (Link)
The NHAI has issued a policy circular adopting and directing implementation of the MoRTH Circular dated 6 May 2025, which prescribes milestones for land acquisition and environmental, forest and wildlife clearances for national highway projects. The circular aims to minimise delays in project execution, contractual disputes, and time and cost overruns by ensuring that key approvals and land acquisition activities are substantially completed before project award and declaration of the appointed date. The framework applies to national highway projects for which tenders are issued on or after 1 June 2025 and requires project development activities to be aligned with statutory approvals, clearance processes and land acquisition progress. Accordingly, environmental, forest and wildlife clearance processes must commence upon approval of the project alignment and achieve specified milestones before invitation of bids or issuance of the Letter of Award ("LOA"). Similarly, railway General Arrangement Drawings ("GADs"), approvals from the Inland Waterways Authority of India and utility shifting estimates are required to be completed at designated stages of project development. A key feature of the circular is the requirement for substantial progress in land acquisition prior to project award. After the project alignment is approved, the Section 3A notification (which starts the land acquisition process) of the National Highways Act, 1956 (the “NH Act”) must be issued within 60 (sixty) days. Before bids are received, Section 3D notification of the NH Act must be completed for more than 90% of the required land. Before the Letter of Award (“LOA”) is issued, compensation awards under Section 3G of the NH Act must be declared for over 90% of the required land, and possession of at least 90% of the land must be available by the appointed date. For standalone bridges, railway overbridges and tunnels, 100% of the land required for approach stretches up to 1 km on both sides must be available before issuance of the LOA.
Applicability of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 in Land Acquisition under the National Highways Act, 1956 dated September 24, 2026 (Link)
The NHAI has issued a policy circular endorsing and directing implementation of the MoRTH Circular dated 15 May 2024 regarding the applicability of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (“RFCTLARR Act”) to land acquisitions carried out under the National Highways Act, 1956 (“NH Act”). The circular seeks to provide clarity on compensation, rehabilitation and resettlement issues and ensure uniform compliance across national highway projects. The clarification follows the decision of the Allahabad High Court in Ram Pal Singh and Others v. National Highway Authority of India and Others, which examined whether affected landowners whose land was acquired under the NH Act are entitled to rehabilitation and resettlement benefits under the RFCTLARR Act. The Court held that rehabilitation and resettlement benefits under the RFCTLARR Act apply to land acquisitions under the NH Act and clarified that the competent authority under the NH Act is responsible for examining such claims and making the relevant awards. The circular further reiterates MoRTH's earlier clarification that the provisions relating to compensation, rehabilitation and resettlement contained in the First, Second and Third Schedules to the RFCTLARR Act apply to acquisitions undertaken under the NH Act. It also emphasises strict compliance with the comprehensive land acquisition guidelines issued by MoRTH on 28 December 2017, which address matters such as determination of market value, calculation of compensation, application of multiplication factors, rehabilitation and resettlement entitlements, acquisition through consent mechanisms, and the role and responsibilities of the Competent Authority for Land Acquisition.
Modified Technical Eligibility Criteria for Utmost Priority Projects dated September 26, 2026 (Link)
The NHAI has issued a circular revising the technical eligibility criteria for Engineering Procurement Construction-mode projects considered critical for timely completion. Under the revised criteria, bidders must have completed at least one four-lane or higher National Highway or expressway project worth at least 35% of the estimated project cost within the preceding five financial years, with a Completion Certificate (“CC”) or Provisional Completion Certificate (“PCC”) issued to the contractor/concessionaire within the original completion schedule plus 90 (ninety) days for Hybrid Annuity Model (“HAM”) projects or 30 (thirty) days for EPC projects, without any extension of time. The circular also clarifies that experience gained as a subcontractor, or CCs/PCCs issued to subcontractors or individual Joint Venture members, will not be considered for qualification purposes. The changes are intended to ensure that only bidders with a proven track record of delivering complete highway projects within contractual timelines are eligible for high-priority projects.
Ministry of Ports, Shipping and Waterways
Merchant Shipping (International Fund for Compensation for Oil Pollution Damage) Rules, 2026 dated July 6, 2026 (Link)
The Ministry of Ports, Shipping and Waterways (“MoPSW”) has notified the Merchant Shipping (International Fund for Compensation for Oil Pollution Damage) Rules, 2026, establishing the framework for implementation of India’s obligations under the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, 1992. The rules apply to pollution damage occurring within India, including its coastal waters, and prescribe reporting and contribution requirements for entities liable to contribute to the international compensation fund for oil pollution incidents. They define associated persons for contribution purposes, require liable entities to furnish information regarding contributing oil receipts, and empower the Director-General to seek information and report the same to the International Oil Pollution Compensation Fund. The framework seeks to facilitate the collection of contributions and ensure the availability of compensation mechanisms for oil pollution damage in accordance with international standards.
Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2026 dated July 6, 2026 (Link)
The MoPSW has notified the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2026, (the “Rules”) establishing the framework for limitation of liability in relation to maritime claims in accordance with the Convention on Limitation of Liability for Maritime Claims, 1976. The Rules prescribe the monetary limits of liability applicable to shipowners, charterers, managers, operators and salvors in respect of claims arising from loss of life, personal injury, property damage and other maritime incidents, with liability limits linked to vessel tonnage and expressed in special drawing rights. They also specify separate limits for passenger claims and set out the methodology for converting special drawing rights into Indian rupees.
Merchant Shipping (Registration of Vessels) Rules, 2026 dated August 21, 2026 (Link)
The MoPSW has notified the Merchant Shipping (Registration of Vessels) Rules, 2026, introducing a comprehensive digital framework governing the registration and ownership of vessels in India. The new rules prescribe detailed procedures for vessel registration, re-registration, transfer of ownership, mortgages, changes in registration particulars, bareboat charter registrations, temporary registrations, closure of registrations and vessel recycling registrations. They also establish requirements relating to ownership declarations, vessel identification, official numbering, surveys, certificates of registration and maintenance of a central digital register. In addition, they contain provisions relating to Indian-controlled tonnage vessels, registration of government vessels, transfer of registry between ports, mortgage recording and discharge, judicial sale of vessels and deletion of vessels from the register, with the objective of improving regulatory oversight, transparency and ease of doing business in the maritime sector.
Merchant Shipping (Carriage of Cargoes and Oil Fuels) Rules, 2026 dated September 2, 2026 (Link)
The MoPSW has notified the Merchant Shipping (Carriage of Cargoes and Oil Fuels) Rules, 2026, replacing the erstwhile Merchant Shipping (Carriage of Cargo) Rules, 1995 and introducing a comprehensive framework governing the carriage of cargoes and oil fuels on ships. The new rules align India's regulatory regime with key international maritime standards and prescribe detailed requirements for the carriage of timber cargoes, containers, solid bulk cargoes, grain, oil fuels and other specialised cargoes. They also impose obligations on shipowners, masters and shippers regarding cargo information, container weight verification, stowage and securing arrangements, fumigation practices, gas and oxygen monitoring systems, and the safe handling of cargoes that may present navigational or safety risks. They further incorporate internationally recognised standards, including the International Maritime Solid Bulk Cargoes Code, International Grain Code, and the International Convention for Safe Containers, and establish regulatory mechanisms for approval of marine laboratories, verification of container gross mass, inspections, certifications and related fees.
Key Judicial Pronouncements
Supreme Court | |||
| The Supreme Court considered a dispute concerning Clause 54 of the General Conditions of Contract ("GCC") governing a public works contract between North Eastern Electric Power Corporation Limited ("NEEPCO") and Astra Construction Private Limited. Clause 54 of the GCC, which provided that no claims for interest or damages would be entertained in respect of money withheld due to a dispute or any delay in making periodical or final payments. The Arbitral Tribunal had nevertheless awarded pre-reference interest, which was subsequently restored by the High Court on the basis of State of U.P. v. Harish Chandra & Co. The Supreme Court distinguished Harish Chandra, observing that the clause considered there only barred interest on money withheld because of a dispute; it did not independently address delay in making payments. In contrast, Clause 54 expressly identified delay in payment as a separate and independent ground for excluding interest. The Court further reaffirmed that Section 31(7)(a) of the 1996 Act gives effect to party autonomy: while an arbitral tribunal ordinarily has power to award pre-reference and pendente lite interest, that power is subject to the parties’ agreement to the contrary. | ||
High Court | |||
Central Transmission Utility of India Ltd. v. M/s Rays Power Infra Ltd. & Ors. | W.A. Nos. 1961 of 2025 and connected matters | Judgment dated August 28, 2026
| The Karnataka High Court considered a batch of writ appeals arising from the Single Judge’s order wherein the learned Single Judge set aside orders passed by Central Transmission Utility of India Limited ("CTUIL") rejecting connectivity applications of M/s Rays Power Infra Limited ("Rays Power") for absence of governmental authorisation under Regulation 5.8(vii)(a) of the Central Electricity Regulatory Commission (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022 (“GNA Regulations”), while declining to strike down or read down the Regulation. Regulation 5.8(vii) of the GNA Regulations, as originally framed, required an RPPD to furnish, with its application for connectivity, an authorisation issued by the Central Government or the State Government, as applicable, to undertake infrastructural activities including arrangement for connectivity on behalf of solar or wind power generators. Rays Power challenged the requirement on the ground that Regulation 5.8(vii)(a) is arbitrary and discriminatory under Article 14 because ordinary generating companies are not subjected to prior governmental authorisation, and an administrative delay in obtaining authorisation exhausts available transmission margins under the first-come-first-served regime. Conversely, CTUIL, Essar Renewables Limited, and AMPIN Energy Utility Private Limited contended that CTUIL had no power to waive the mandatory statutory requirement and that the Single Judge could not grant equitable relief disturbing the statutory queue-based mechanism without invalidating the Regulation. The Division Bench held that the classification between an RPPD (which develops common infrastructure and pooling arrangements for multiple generating stations) and individual generating companies is founded on an intelligible differentia aimed at orderly transmission planning and preventing speculative capacity blocking. The Court ruled that an administrative deficiency such as the State Government not prescribing a timeline for grant of authorization cannot invalidate an otherwise valid subordinate legislation framed under Sections 79 and 178 of the Electricity Act, 2003. Consequently, the High Court dismissed the writ appeals filed by Rays Power Infra Limited, allowed the appeals filed by CTUIL, Essar Renewables, and AMPIN Energy Utility, upheld the constitutional validity of Regulation 5.8(vii)(a) of the GNA Regulations. | ||
JSP Green Wind 1 Private Limited v. State of Karnataka & Ors. | W.P. No. 27996 of 2024 c/w W.P. Nos. 15113 of 2022, 23338 of 2023, 26998 of 2024, 2290 of 2025, 9757 of 2025, 18341 of 2025 and 31500 of 2025 | Judgment dated August 28, 2026
| The Karnataka High Court considered a batch of writ petitions filed by renewable energy developers and industry associations challenging Clauses 1.2, 6.1, 6.2 and 7.2 of the Karnataka Renewable Energy Policy 2022-27, notified on April 16, 2022, and its amendment of February 27, 2023. Clause 1.2 dealt with the applicability of the Policy to projects that had been established or were in the process of being established before the Policy came into force; Clause 6.1 prescribed the requirement of obtaining a Government Order before commencing execution of projects, including projects awarded through competitive bidding; Clause 6.2 prescribed limits on the extent of land that could be utilised for renewable energy projects on a per-MW basis; and Clause 7.2 prescribed application, processing and related charges, including the requirement of a performance bank guarantee. The State and the Karnataka Renewable Energy Development Limited defended the policy as optional and facilitative. The Court held that the challenge to Clause 1.2 was rendered infructuous because the 2023 amendment had removed its retrospective effect. It upheld the Government Order requirement in Clause 6.1, reasoning that the State's power to regulate the matter flows from the Electricity Act, 2003, as interpreted in Ramayana Ispat (P) Ltd. v. State of Rajasthan. In relation to Clause 6.2, the Court held that the land-use restriction would be arbitrary where the land is acquired or leased by the project developer itself, but would apply where the Government acquires the land and hands it over to the developer. In relation to Clause 7.2, the Court read down the provision, holding that fees could be levied where there is a quid pro quo from the State and that a levy must have authority in law, having regard to Article 265 of the Constitution. The Court also directed that pending applications be processed within eight weeks in light of its observations. | ||
Appellate Tribunal for Electricity (“APTEL”) | |||
Case Title | Summary | ||
| The Southern Power Distribution Company of Andhra Pradesh Limited and the Andhra Pradesh Power Coordination Committee (collectively, the "Appellants") challenged an order of the Andhra Pradesh Electricity Regulatory Commission (the "APERC") directing payment of compensation to M/s Chaitanya Projects Limited (the "Generator") under Section 70 of the Indian Contract Act, 1872 for electricity injected into the grid pursuant to an unapproved Power Purchase Agreement (the "PPA"). While APERC had declared the PPA to be invalid for want of statutory approval under Section 86(1)(b) of the Electricity Act, 2003, it nevertheless held that the Appellants had derived the benefit of the electricity supplied and were liable to compensate the Generator. The Appellants contended before the APTEL that compensation could not be awarded where the underlying PPA was legally unenforceable. The Hon’ble APTEL, however, noted that the issue had already been decided in its earlier judgment concerning an identical dispute involving Vibrant Greentech India Private Limited (the "VGIPL"), arising from the same APERC order, and accordingly upheld the application of Section 70 of the Indian Contract Act to compensate the Generator for the electricity supplied. On the question of compensation, Hon’ble APTEL declined to remand the matter for fresh determination of the tariff, unlike in the parallel VGIPL proceedings, since the Generator had neither appeared before the Tribunal nor filed any cross-appeal seeking enhancement of the compensation. It further held that its discretionary powers under Order XLI Rule 33 of the Code of Civil Procedure, 1908 ought not to be exercised in favour of a non-appealing party in the absence of exceptional circumstances, and accordingly upheld the compensation awarded by APERC at the rate of Rs. 2.93 per unit. | ||
Central Electricity Regulatory Commission | ||
Case Title | Summary | |
In re: Mechanism for Treatment of Connectivity Granted under the GNA Regulations Based on Letters of Award Where the PPA has Not Been Signed | Petition No. 11/SM/2026 (Suo Motu) | Order dated July 10, 2026.
| The CERC, exercising its suo motu powers, issued an order to address the issue of inter-State transmission system (the "ISTS") connectivity that had been granted on the basis of Letters of Award (the "LoAs") but remained blocked because the corresponding Power Purchase Agreements (the "PPAs") had not been executed within 12 months. After considering stakeholder comments and recommendations from the Ministry of Power, the Hon’ble CERC framed a one-time optional mechanism under its powers to relax and remove difficulties under the CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 (the “GNA Regulation”). The mechanism provides eligible entities with four alternatives, namely: (i) retain connectivity by furnishing a performance bank guarantee and transitioning out of the LoA route, (ii) substitute the existing LoA with a PPA executed under another LoA, (iii) surrender connectivity without forfeiture of connectivity bank guarantees, enabling reallocation or auction of the released capacity, or (iv) continue under the existing regulatory framework. The Hon’ble CERC further held that the mechanism could validly be introduced through an order without requiring a formal amendment to the GNA Regulations, as it constituted an exercise of its powers under the relaxation and suo motu provisions. It observed that Renewable Energy Implementing Agencies (the "REIAs") should have taken timely action to cancel dormant LoAs to prevent long-term blocking of connectivity and directed that connectivity released under the mechanism be reallocated transparently, with auction proceeds utilised to reduce transmission charges for designated ISTS customers. | |
| The CERC initiated suo motu proceedings noting that a number of Connectivity Applicants, having been served or apprehending revocation notices for failure to achieve the milestones prescribed under Regulations 11A, 11B and 24.6 of the CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022 (the "GNA Regulations"), had approached the Commission individually seeking additional time to comply. Observing that Connectivity constitutes a scarce resource and that such cases required uniform treatment, the Commission had earlier proposed a draft Compensation Procedure vide its Order dated April 15, 2026, inviting comments from stakeholders, and thereafter conducted a public hearing. After considering the written comments and oral submissions, the Commission finalised the "Procedure for Levying the Compensation Charges for Permitting the Additional Time to Achieve the Milestones under the GNA Regulations" (the "Procedure"), annexed as Annexure-I to the Order, prescribing eligibility criteria based on demonstrated land, financial closure, or construction progress, a graded scale of Milestone Extension Charges escalating with the duration of delay, and maximum permissible extensions of three months for land compliance, six months for financial closure, and twelve months for achieving the Commercial Operation Date. The Commission rejected stakeholder submissions seeking a force majeure carve-out, attribution-based waiver, or linkage of the compensation charge to actual system costs or PPA-related delays, holding that the mechanism is an optional facilitative relaxation which a Connectivity Grantee may choose not to avail, and that payment of compensation is required irrespective of the cause of delay in order to disincentivise the holding of Connectivity without commensurate project progress. The Commission clarified that the Procedure does not override or dilute the terms of any Power Purchase Agreement, including provisions relating to Liquidated Damages, and that affected entities remain at liberty to approach the Commission under the applicable provisions of the Electricity Act, 2003 and the Regulations framed thereunder. | |
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