INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
• the CTU and STUs , which plan, develop and co- ordinate the inter-state and intra-state transmission systems, respectively; • GRID-INDIA , which, through the NLDC, RLDCs and SLDCs, ensures secure, reliable and integrated operation of the power system with real-time scheduling and dispatch of electricity; and • the Appellate Tribunal for Electricity (APTEL) , which hears appeals against orders of CERC and SERCs, with further appeal to the Supreme Court of India on questions of law. 1.6 Recent Changes in Law or Regulation The past year has seen significant regulatory develop- ments in India’s power sector, particularly in relation to transmission access, renewable energy procure- ment, energy storage, captive generation and carbon markets. Key developments include: • CERC ( Connectivity and General Network Access to the Inter - State Transmission System ) ( Third Amendment ) Regulations , 2025 : Introduced solar- hour access and non-solar-hour access, enabling renewable energy and energy storage projects to share inter-state transmission capacity based on their generation profiles, thereby improving utilisa- tion of the transmission network. • CERC ( Sharing of Inter - State Transmission Charg- es and Losses ) ( First Amendment ) Regulations , 2025 : Introduced a framework for extension of the Scheduled Commercial Operation Date (SCOD) for eligible renewable energy and battery energy stor- age projects. • Guidelines for Virtual Power Purchase Agreements , 2025 : CERC introduced India’s first regulatory framework for virtual power purchasing agree- ments (VPPAs), enabling consumers to procure the environmental attributes of renewable energy without physical delivery of electricity. • CERC ( Terms and Conditions for Purchase and Sale of Carbon Credit Certificates ) Regulations , 2026 : Established the regulatory framework for trading Carbon Credit Certificates under India’s Carbon Credit Trading Scheme, creating a regu- lated market for carbon credits. • Electricity ( Amendment ) Rules , 2026 : Significantly revised the group captive framework by recog- nising group company structures for ownership
transaction is likely to cause an appreciable adverse effect on competition in India. Corporate and Other Regulatory Approvals Schemes of arrangement, mergers and demergers require the approval of the National Company Law Tribunal under the Companies Act, 2013. Listed enti- ties must also comply with the applicable regulations of the Securities and Exchange Board of India, while cross-border transactions are subject to FEMA and the applicable regulations. Typical Conditions and Purchaser Requirements The Electricity Act does not prescribe uniform statuto- ry eligibility criteria for purchasers. For projects award- ed through tariff-based competitive bidding, the appli- cable bidding documents prescribe minimum financial and technical qualification requirements, including net worth and sector experience. 1.5 Central Planning Authorities The Electricity Act establishes a multi-tier institutional framework for planning, regulation and operation of the electricity sector. The principal authorities include: • the Ministry of Power (MoP) , which formulates the National Electricity Policy and Tariff Policy, issues policy directions under the Electricity Act and oversees the overall development of the electricity sector; • the Ministry of New and Renewable Energy (MNRE) , which formulates policies and schemes for the development of renewable energy, including solar, wind, bioenergy, green hydrogen and energy storage, and supports renewable capacity addition and grid integration; • the CEA , which acts as the principal technical planning authority, prepares the National Electricity Plan and resource adequacy plans, plans genera- tion and transmission capacity, prescribes techni- cal, grid and safety standards, and advises the Government of India on technical matters; • CERC and SERCs , which regulate the electricity sector by granting licences, determining tariffs, regulating power procurement and open access, promoting competition and adjudicating disputes within their respective jurisdictions;
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