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Centre notifies new rules providing easier access to electricity transmission network

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Power Ministry has promulgated the Electricity (Transmission System Planning, Development and Recovery of Inter-State Transmission Charges) Rules 2021. This paves the way for overhauling of transmission system planning, towards giving power sector utilities easier access to the electricity transmission network across the country.

At present, generating companies apply for long-term access (LTA) based on their supply tie-ups, while medium-term and short-term transmission access is acquired within the available margins. Based on LTA application, incremental transmission capacity is added. A number of sector developments, such as the increasing focus on renewable energy, and the development of the market mechanism, necessitated a review of the existing transmission planning framework based on LTA.

The rules underpin a system of transmission access which is termed as a General Network Access (GNA) in the inter-state transmission system. This provides flexibility to the States as well as the generating stations to acquire, hold and transfer transmission capacity as per their requirements.

In a major change from the present system of taking transmission access, power plants will not have to specify their target beneficiaries. The rules will also empower state power distribution and transmission companies to determine their transmission requirements and build them. Also, states will be able to purchase electricity from short term and medium term contracts and optimise their power purchase costs.

Apart from introducing GNA, the rules also specify clear roles of various agencies involved in the transmission planning process. The Central Electricity Authority shall prepare a short-term plan every year on rolling basis for next 5 years and prospective plan every alternate year on rolling basis for next 10 years. The Central Transmission Utility shall prepare an implementation plan for inter-State transmission system every year on a rolling basis for up to next 5 years which will take into account aspects such as right -of-way and progress of the generation and demand in various parts of the country.

The rules specify how the existing LTA would be transitioned into General Network Access. The rules also outline the recovery of GNA charges from the users of the transmission network and assign the responsibility of billing, collection and disbursement of inter state transmission charges to the Central Transmission Utility.

The rules have enabled, for the first time, that the transmission capacity can be sold, shared or purchased by the States and generators. The rules prescribe that excess drawal or injection over the GNA capacity sanctioned shall be charged at rates which are at least 25 per cent higher and this will ensure that the entities do not under-declare their GNA capacity. The Central Electricity Regulatory Commission (CERC) has been empowered to bring out detailed regulations on GNA in inter state transmission systems.

The Central government has notified these rules with a view to streamline the process of planning, development and recovery of investment in the transmission system. The rules are aimed at encouraging investments in the generation and transmission sectors. The rules will enable the country to develop deeper markets.

Transmission system is the vital linkage in the power sector value chain connecting the generation and the demand. The Central government is committed towards ensuring adequacy of transmission system for the supply of power from one State to another State and across regions. The rules brought out by the Central government underpin that “electricity transmission planning shall be made in such way that the lack of availability of the transmission system does not act as a brake on the growth of different regions and the transmission system shall, as far as possible, to be planned and developed matching with growth of generation and load and while doing the planning, care shall be taken that there is no wasteful investment”.

In a series of other reforms carried out earlier, the Ministry had separated the Central Transmission Utility from POWERGRID to provide transparency and a level playing field in the bids for transmission and reduced the lock-in period for transmission projects in order to attract investments and more competition. The Ministry of Power also issued the Right of Consumer rules, which empower consumers and rules laying down the ceiling for late payment surcharge.

Business

Nifty, Sensex see firm recovery after RBI’s support to rupee

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Indian equity benchmarks posted a firm recovery, sustaining gains for the second week as investors looked past early inflation worries, especially after the central bank’s special dollar window for oil marketing companies helped the rupee rebound.

Nifty added 2.78 per cent during the week and gained 0.65 per cent on the last trading day to reach 23,146.

At close, Sensex was up 413 points or 0.56 per cent at 74,729. It gained 3.11 per cent during the week.

Market sentiment was dented earlier in the week by consumer inflation hovering near the upper end of the Reserve Bank of India’s tolerance band and a hotter‑than‑expected wholesale price index print that pushed benchmark bond yields to multi‑year highs.

The central bank raised the daily cash reserve ratio maintenance requirement to absorb surplus liquidity, adding to caution. Market confidence, however, improved after the central bank’s special dollar window for oil marketing companies and tighter hedging norms drove a rupee-rebound, analysts said.

“Expectations of a review of LTCG tax and STT, softer crude prices and easing bond yields further revived risk appetite, prompting investors to tilt towards counters with strong Q2FY27 business updates, though the rally remained concentrated in large-caps, with mid-caps posting modest gains and small-caps ending marginally lower,” they added.

“Participants should remain selective, maintain disciplined position sizing and favour a hedged approach amid elevated macroeconomic and earnings-related uncertainty,” the experts said.

Information technology (IT) sector emerged as the standout performer on robust earnings and upbeat management commentary, while healthcare and pharmaceuticals lagged as investors favoured sectors with stronger near-term earnings visibility.

Meanwhile, fast‑moving consumer goods stocks came under pressure amid concerns over margin compression from elevated input costs.

Broad market indices performed largely in line with the benchmark indices as Nifty Midcap100 added 0.58 per cent and Nifty Smallcap100 dipped 0.12 per cent during the week.

In addition, foreign institutional investors (FIIs) turned net buyers of Rs 11.66 billion in Indian equities on Friday after overall selling eased sharply this week as market sentiment improved.

FIIs remained net sellers for the ninth straight week but their weekly selling moderated to Rs 89.91 billion from Rs 302.94 billion the previous week. On the other hand, domestic institutional investors (DIIs) stayed net buyers for a ninth consecutive week at Rs 78.13 billion, though they were net sellers of Rs 36.61 billion on Friday.

The sustainability of the recovery will hinge on earnings growth broadening beyond IT with revenue and margin delivery across financials, consumption and industrials under close scrutiny, analysts said.

Investors are keen on India’s October PMI that will offer insight into domestic demand momentum, while US jobless claims and Japan’s inflation print will shape global rate expectations.

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Japanese delegation visits MLFF tolling system near Delhi

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A Japanese delegation visited the Multi-Lane Free Flow (MLFF) tolling system in Mundka-Bakkarwala on Friday on the sidelines of the 12th India–Japan Joint Working Group Meeting on Roads and Road Transportation.

The MLFF system provided insights into India’s technology-driven initiatives for seamless and efficient highway travel.

At the MLFFs, the National Highways Authority of India (NHAI) uses a combination of RFID-based FASTag electronic toll collection, automatic number plate recognition (ANPR) and AI analytics to allow vehicles to pass through charging points without stopping, slowing down or remaining in a designated lane.

MLFFs have already been installed at Choryasi in Gujarat, Mundka in Delhi, Gharaunda in Haryana and Daulatpura and Manoharpura in Rajasthan.

While 12 further locations have been awarded for conversion, tenders have also been launched covering an additional 104 toll plazas around the country.

The MLFF at Choryasi on the Surat–Bharuch section of NH-48 was the first to become operational.

The one at Mundka on Delhi’s Urban Extension Road-II was the second.

The expansion plan represents a significant shift from India’s traditional barrier-based toll plazas.

Rather than moving immediately to satellite-based toll collection, the Indian government has opted to build on the country’s established FASTag system and combine it with ANPR and AI.

Expert committees had recommended further consideration of GPS-based barrier-free tolling because of security, privacy and operational control issues, the Ministry of Road Transport and Highways has indicated.

FASTag and ANPR/AI was thus selected as the technology for the current MLFF programme.

The session of the India–Japan Joint Working Group on Roads and Road Transportation Sector was successfully held at Bharat Mandapam in New Delhi.

Discussions focused on advanced construction technologies, bridge and tunnel engineering, sustainable infrastructure and digital innovations, fostering the exchange of technical expertise and best practices.

“The meeting reaffirmed both nations’ commitment to safe, sustainable and technology-driven road infrastructure, aligned with the vision of Viksit Bharat @ 2047,” the Ministry said in a statement.

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India-US trade deal 98-99 percent done: US official

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Washington, Oct 16: A long-awaited trade agreement between India and the United States is almost complete, with only one or two per cent of negotiations remaining, a senior US official said, signalling that the two countries are approaching a breakthrough after months of high-level discussions.

The official said the biggest issues had already been resolved and that negotiations were continuing at the highest political levels, including between President Donald Trump and Prime Minister Narendra Modi.

“The biggest items have been settled. I mean …., it’s pretty much done. We have that one, one or two per cent left,” the official told reporters during a State Department briefing on Friday.

The remarks came ahead of Secretary of State Marco Rubio’s scheduled visit to India, where he will hold discussions with Indian government officials and leading business executives in Mumbai and Jamnagar.

The official said the two governments remained in constant contact over the proposed agreement.

“We are actively engaged every single week,” the official said, adding that high-level discussions on the trade deal were taking place regularly.

The official cited recent diplomatic engagements involving US Trade Representative Jamieson Greer, India’s Commerce Minister Piyush Goyal and conversations between Trump and PM Modi as evidence of the momentum behind the negotiations.

However, the official also identified a significant complication that had delayed the agreement.

An earlier understanding had been linked to the International Emergency Economic Powers Act, or IEEPA, but the legal framework had to be reconsidered after the law was struck down, according to the official.

The development forced negotiators to revisit elements of the proposed agreement and contributed to several additional months of discussions.

Despite those complications, the official expressed optimism that the remaining differences could be resolved soon.

Rubio is scheduled to travel first to Uzbekistan for meetings with Central Asian leaders before proceeding to India.

In Mumbai, he will meet Indian government counterparts and senior executives from some of the country’s largest companies.

The official said the decision to visit Mumbai rather than New Delhi reflected the administration’s growing emphasis on commercial diplomacy and Indian investment in the United States.

Rubio will also travel to Jamnagar.

The official said Washington was seeking closer engagement with India across information technology, pharmaceuticals, defence cooperation and other sectors.

Further visits by senior American Cabinet officials are also anticipated next year as both governments seek to expand bilateral engagement.

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