INDIA Law and Practice Contributed by: Anupam Varma, Poonam Verma Sengupta, Sakshi Kapoor and Rajesh Jha, JSA
3.5 Decommissioning a Generation Facility Power generation is a de-licensed activity, meaning specific regulatory frameworks for decommissioning depend primarily on the energy source and environ- mental guidelines rather than a single unified statute. Plant closures are largely driven by techno-economic or commercial considerations. Consequently, owners of thermal/renewable facilities currently bear no legal requirement to keep funds set aside during the plant’s operational lifecycle, subject to the following: • Environmental compliance and waste manage- ment : Facility owners must adhere to the Hazard- ous Waste Management Rules, 2016, the Solid Waste Management Rules, 2016, and the E-Waste Management Rules, 2022. Dismantling requires a comprehensive Environmental Management Plan to manage hazardous materials. • Nuclear facilities : Unlike thermal and renew- able facilities, nuclear plants have strict, feder- ally mandated decommissioning requirements. For instance, Section 10 (3)(e) of the SHANTI Act mandates the developer to maintain sufficient financial security to, inter alia, ensure safe disposal of radioactive substances and decommissioning of the facility. 4. Transmission Lines and Associated Facilities 4.1 Constructing and Operating Transmission Lines and Associated Facilities The ownership, construction and operation of trans- mission lines and associated facilities (including ener- gy storage) is a distinct licensed activity under Section 14 of the Electricity Act. The Act also establishes the framework for transmission planning, open access and non-discriminatory access to the transmission system, while the CEA prescribes the applicable tech- nical and safety standards. Regulatory Oversight Inter-state transmission is regulated by CERC, while intra-state transmission is regulated by the respective SERCs. The applicable regulatory framework includes the National Electricity Policy, the Tariff Policy, the CERC (Procedure, Terms and Conditions for Grant
of Transmission Licence and Other Related Matters) Regulations, 2024, the CERC (Connectivity and Gen- eral Network Access to the Inter-State Transmission System) Regulations, 2022, the Indian Electricity Grid Code, 2023 and the applicable State Grid Codes. Land Acquisition and Right of Way Section 164 of the Electricity Act empowers the gov- ernment to confer the powers of a “Telegraph Author- ity” on transmission licensees. This bypasses the need to acquire land ownership, granting authority to lay lines and build towers over private properties with minimal physical acquisition. Where permanent acquisition of land is required, such as for substations or certain energy storage facilities, acquisition is governed by the LARR Act. Environmental Reviews The grant of a transmission licence is not subject to a separate environmental review. However, transmis- sion projects may require project-specific statutory approvals under Environment (Protection) Act, 1986 and Forest (Conservation) Act, 1980 depending on their location and nature, including approvals relat- ing to forest land, wildlife, coastal regulation zones and other environmentally sensitive areas under the applicable legal framework. 4.2 Obtaining Approvals to Construct and Operate Transmission Lines and Associated Facilities Required Approvals To construct and operate a transmission line in India, developers broadly require the following approvals. Techno Economic Clearance Before applying for Techno Economic Clearance (TEC), the developers must conduct a route alignment survey to minimise the impact on forests, populated areas and the existing infrastructure. A Detailed Pro- ject Report (DPR) must be prepared. For inter-state lines, developers are required to obtain TEC from the CEA. The CEA broadly evaluates the DPR, tower design and compliance with grid standards.
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