Gati Vidhi – January 2026

MoP invites comments or suggestions to the draft amendments proposed to Rule 3 of the Electricity Rules, 2005

The Ministry of Power (“MoP”) has, vide notice dated 02.01.2016, invited comments on the draft amendments proposed to Rule 3 of the Electricity Rules, 2005. Rule 3 stipulates the requirements of a Captive Generating Plant.

The amendments proposed in Rule 3 are as under:

1. Sub-rule (1) defines the terms ‘assessment period’, ‘captive user’, ‘ownership’ and ‘Special Purpose Vehicle’ (“SPV”).
2. Sub-rule (2) (i) provides that no power plant shall qualify as a captive generating plant unless 26% of the ownership is held by captive user(s), and a minimum of 51% of the aggregate electricity generated during the assessment period is consumed for captive use.
3. Explanation (1) to sub-rule (2) (i) provides that the electricity required to be consumed by captive users shall be determined with reference to the aggregate generation of the unit(s) identified for captive use and not the station as a whole.
4. Explanation (2) to sub-rule (2) (i) provides that the equity shares to be held by the captive user(s) shall not be less than 26% of the proportionate equity of the company corresponding to the unit(s) identified as the captive generating plant.
5. Explanation (3) to sub-rule (2) (i) provides that in case of a generating station owned by a company formed as a SPV, the conditions specified in sub-rule (2) (i) shall apply to the unit(s) identified for captive use, and not to the station as a whole.
6. Sub-rule (2) provides that in case of a power plant set up by a registered co-operative society, the conditions specified in sub-rule (2) (i) shall be satisfied collectively by the members.
7. Sub-rule (3) relates to a power plant set up by an association of persons.
   • Conditions specified in sub-rule (2) (i) shall be satisfied collectively by all the captive users. For the verification of compliance, the aggregate consumption by all such users shall be considered.
   • The captive consumption by an individual user shall be admissible only up to 100% of its proportionate entitlement, calculated with reference to its share in the total captive ownership however, this shall not be applicable where the user holds not less than 26% ownership in the power plant.
   • Proportionate entitlement of each captive user shall be determined based on the weighted average shareholding of such captive user during the assessment period where the ownership pattern varies during this period.
   • For calculating proportionate consumption, a captive user, its subsidiaries and its holding company (along with its other subsidiaries) shall be collectively treated as a single captive user.
8. Sub-rule (3) provides that the captive user(s) shall ensure that the conditions are complied with during the assessment period. Where the minimum captive consumption requirement is not met during such period, the entire electricity generated by the power plant shall be treated as supply of electricity by a generating company.
9. Sub-rule (4) provides for verification of captive status.
   • Power plant and the captive user(s) located in the same State – verification to be done by the nodal agency designated by the State Government as per the procedure issued by it.
   • Power plant and the captive user(s) located in different States – verification to be done by the National Load Despatch Centre (NLDC) as per the procedure issued by it with approval of the Central Government.
   • Appeal against the verification shall lie before a Grievance Redressal Committee constituted by the Appropriate Government.
   • Cross-subsidy and additional surcharges shall not be levied pending verification, subject to a declaration being furnished by the user as prescribed. If the plant fails verification, the same will be payable along with applicable carrying costs calculated at the base rate of Late Payment Surcharge as per the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022.

The comments or suggestions can be submitted within 15 days i.e., by 17.01.2026.

A copy of the draft amendment can be accessed here.

MoC notifies the Colliery Control (Amendment) Rules, 2025

The Ministry of Coal (“MoC”) has, vide Notification dated 23.12.2025, notified the Colliery Control (Amendment) Rules, 2025 (“Amendment Rules”) to amend the Colliery Control Rules, 2004 (“Principal Rules”).

The salient features of the Amendment Rules are as under:

1. Amendment to Rule 9 (1) – The owner of a colliery shall not open a coal mine, seam or a section of a seam without prior approval of the Board of the company (instead of prior written permission of the Central Government).
2. Insertion of provisos to Rule 9 (1) – While according approval, the Board shall ensure that all requisite permissions have been obtained and compliances done, and an intimation shall be sent to Coal Controller Organisation within 15 days of opening the coal mine or the seam or a section of the seam.
3. Amendment to Rule 9 (2) – No owner of a colliery, which is not a company registered under the Companies Act, 2013, shall open a coal mine or a seam or a section of a seam, without prior approval of the Coal Controller Organisation (instead of no owner of a colliery shall commence mining operations in a colliery or seam or a section of a seam, in which mining operation has been discontinued for a period exceeding 180 days, without the prior written permission of the Central Government).
4. Insertion of Rule 9 (3) – Rule 9 (1) and (2) shall also be applicable with respect to the commencement of mining operation in a mine or a seam or a section of a seam where operation has been discontinued for a period of 180 days or more.
5. Insertion of Rule 9 (4) – The Coal Controller Organisation shall maintain an indicative list of permissions required from the Central Government, the State Government and statutory bodies required under Rule 9 (1) and (2).

A copy of the Amendment Rules can be accessed here.

PNGRB announces the launch of Piped Natural Gas Drive 2.0

The Petroleum and Natural Gas Regulatory Board (“PNGRB”) has, vide Press Release dated 01.01.2026, announced the launch of Piped Natural Gas (“PNG”) Drive 2.0, which is a nationwide campaign commencing on 01.01.2026 and continuing till 31.03.2026. The initiative aims to significantly expand natural gas connectivity and usage across India, and it pursues multiple objectives central to India’s clean energy transition, including:

1. achieving comprehensive geographical area connectivity through natural gas pipelines;
2. expanding the domestic PNG consumer base;
3. enhancing commercial and industrial adoption of natural gas;
4. reactivating dormant connections; and
5. augmenting Compressed Natural Gas (“CNG”) infrastructure.

The initiative adopts a more targeted approach, with a focus on stakeholder engagement and strengthened monitoring frameworks. Its core objective is to ensure uninterrupted access to clean and reliable fuel for households and transportation. It envisions a significant advancement in India’s clean energy landscape through an integrated approach combining public outreach and infrastructure expansion.

The salient features of this initiative are as under:

1. City Gas Distribution (“CGD”) entities have been authorised to lay, build and operate CGD networks across 307 geographical areas through competitive bidding processes. These entities will establish comprehensive infrastructure, including local transmission pipelines, CNG stations and piped natural gas connections serving domestic, commercial, and industrial consumers. 
2. PNGRB will provide strategic coordination and oversight at the national level. 
3. An industry committee, comprising representatives from leading CGD entities, has been constituted to guide execution, drawing upon collective operational expertise and market experience. 
4. A focused framework covering 110 priority geographical areas has been identified for intensified on-ground activities and robust monitoring, ensuring targeted efforts in regions with high growth potential and infrastructure readiness.
5. Extension of natural gas pipeline connectivity to additional 37 geographical areas.
6. Connection to 44 districts not connected with the PNG network.
7. Upgrading Daughter Booster CNG Station infrastructure to online operational mode to ensure seamless supply continuity.

The Press Release dated 01.01.2026 can be accessed here.

MNRE issues Revised Guidelines for series approval of SPV Modules for conducting testing in Test Labs for implementation of Solar Systems, Devices and Components Goods Order, 2025

The Ministry of New and Renewable Energy (“MNRE”) has, vide notice dated 19.12.2025, issued the Revised Guidelines for series approval of SPV Modules for conducting testing in Test Labs for implementation of Solar Systems, Devices and Components Goods Order, 2025 (“2025 Order”). The said Revised Guidelines have to now be followed for conducting tests on SPV Modules by test labs. However, SPV Modules of capacity up to 5 MW used for solar lantern applications will be tested as per IS 16476 (Part I) and for those with capacity in the range of 5 – 20 MW, appropriate standard will be brought out by BIS. The Revised Guidelines supersede the Guidelines dated 13.08.2025.

The salient features of the Revised Guidelines are as under:

1. ‘Product Family’ can be defined by the maximum configuration of components / sub-assemblies and a description of how the models are constructed. All models included in a family typically have common design, construction, parts or assemblies essential to ensure conformity with applicable requirements.
2. At least 2 modules each from the lower, median and higher end power class shall be tested to cover the entire family.
3. The lab will charge the cost of testing only for these modules and test report can be issued to all such sets of other wattage covered under the family.
4. The testing procedure standards mentioned in the Quality Control Order, 2025 shall be followed by the testing labs.
5. For passing the minimum efficiency of Solar PV modules, the lowest and highest sample of the family should pass it as per the 2025 Order for grant of licence to the entire family.
6. All the modules should contain clear and indelible marking laminated inside the glass – manufacturer details, model number, unique serial number, nominal wattage and tolerance percentage, year and country of origin, efficiency of module at STC and brand name, if applicable.
7. In case of any changes in BOM of the PV module or process modifications, certification retesting as per IS/IEC 62915:2023 shall be required.

A copy of the Revised Guidelines can be accessed here.

APTEL allows appeals by pre-2006 Bagasse-based Cogeneration Plants in Tamil Nadu

The Appellate Tribunal for Electricity (“APTEL”), vide its judgment dated 22.12.2025 in Appeal No. 139 of 2016 (Shree Ambika Sugars Ltd. & Ors. v. TNERC & Anr.) and Appeal No. 375 of 2017 (Subramaniya Siva Co-operative Sugar Mills Ltd. v. TNERC & Anr.), partly allowed the appeals filed by sugar mills operating pre-2006 bagasse-based cogeneration plants in Tamil Nadu, challenging the tariff order dated 31.03.2016 passed by TNERC in Petition. No. 8 of 2011.

The appeals arose from TNERC’s determination of tariff for pre-2006 bagasse-based cogeneration plants, wherein the revised tariff was made applicable only from 21.11.2011 (the date of filing of the tariff petition), capital cost was fixed at ₹2.50 crore/MW, variable cost components including fuel cost and Station Heat Rate (“SHR”) were determined, and carrying cost was denied. The Appellants contended that the tariff ought to apply from 01.04.2010, that the capital cost and SHR had been determined without proper analysis, that fuel cost had been incorrectly applied, and that denial of carrying cost was contrary to settled law.

On the date of applicability of tariff, APTEL held that it was unjust to link the revised tariff to the date of filing of the petition by Tamil Nadu Generation and Distribution Corporation Limited (“TANGEDCO”). The Tribunal noted that certain PPAs had expired on 31.03.2010 and that any revised or supplementary PPA would, in any event, have required approval from that date. It accordingly directed that the tariff determined pursuant to the impugned order shall be applicable from 01.04.2010.

On capital cost and fixed charges, APTEL observed that TNERC had relied on a broad analogy without undertaking a detailed examination of factors such as vintage and design configuration of the plants. Holding that the issue had not been properly analysed, the Tribunal remanded the determination of capital cost and fixed charges to TNERC for fresh consideration, with liberty to examine relevant parameters.

On fuel cost, APTEL held that the cost of bagasse cannot differ between pre-2006 and post-2006 plants. The Tribunal directed that the bagasse cost applicable to post-2006 plants as on 01.04.2010, and as determined thereafter by TNERC from time to time (including pursuant to remand proceedings when finalized), shall also apply to pre-2006 plants.

On SHR, APTEL noted that SHR is a parameter impacting variable cost and that TNERC had not prudently evaluated SHR specifically for pre-2006 plants. The Tribunal held that SHR for pre-2006 plants cannot be lower than that for post-2006 plants and accordingly remanded the issue to TNERC for fresh determination.

On carrying cost, APTEL reiterated that carrying cost is payable where a generator is deprived of timely recovery of lawful dues. Since the revised tariff was held to be applicable from 01.04.2010, the Tribunal directed that carrying cost shall be payable on the differential amounts arising from re-determination of tariff from that date until actual payment.

Accordingly, APTEL partly allowed the appeals, modified the impugned order to the above extent, and remanded the identified issues to TNERC for fresh consideration.

CERC issues Guidelines for Virtual Power Purchase Agreements

The Central electricity Regulatory Commission (“CERC”) vide its notification dated 24.12.2025 issued the Guidelines for Virtual Power Purchase Agreements (VPPAs) to provide a regulatory framework for facilitating RPO and RCO compliance. The key features of the Guidelines are as follows:

• VPPAs are recognised as bilateral, non-tradable and non-transferable Over-The-Counter contracts under the regulatory jurisdiction of CERC.
• VPPAs are structured as Non-Transferable Specific Delivery contracts and do not fall under securities market regulation.
• Renewable energy generating stations shall sell electricity through power exchanges or other authorised modes for physical delivery, not for RPO/RCO compliance.
• Renewable Energy Certificates issued to the generating station shall be transferred to the Consumer or Designated Consumer for RPO/RCO compliance and shall not be tradable.
• Settlement under VPPAs shall be on a cash basis, through bilateral settlement of the difference between the VPPA strike price and the market settlement price.
• VPPAs shall have a minimum contract duration of one year and shall bind the parties for the full contract period.
• Safeguards have been prescribed to avoid double counting of renewable capacity and RECs.
• Disputes arising under VPPAs shall be resolved in accordance with the mutually agreed terms of the contract.

Copy of the CERC guidelines can be accessed here.

CERC notifies Second Amendment to Cross-Border Electricity Trade Regulations

CERC notified the Central Electricity Regulatory Commission (Cross Border Trade of Electricity) (Second Amendment) Regulations, 2025, introducing revisions to the regulations governing cross-border trade of electricity between India and neighbouring countries. The amendment seeks to update the existing regulations in line with recent reforms in India’s transmission access regime and the growing integration of regional power markets. A key change is the replacement of the earlier long-term, medium-term, and short-term access concepts with General Network Access (GNA) and Temporary GNA, thereby bringing cross-border transactions at par with domestic transmission access arrangements. The regulations also update and rationalise definitions to align terminology with current grid, connectivity, and power market regulations.

In addition, the amendment revises procedures for application, fees, and bank guarantee requirements, introduces clearer timelines for grant and relinquishment of access, and provides structured mechanisms for exit, refund, and forfeiture. The role of system operators has been strengthened, with emphasis on grid coordination, data integrity, and cybersecurity for cross-border operations.

Copy of CERC Second Amendment to Cross-Border Electricity Trade Regulations can be accessed here.

BERC issues Draft Consultative Paper on Determination of Generic Levelised Tariffs for Renewable Energy for FY 2025–26

The Bihar Electricity Regulatory Commission (“BERC”) on 26.12.2025 has issued a draft Consultative Paper for determination of generic levelised Tariff for FY 2025-26 for Power Generated from Renewable Energy Sources. The draft focuses on the proposed tariffs for electricity generated from biomass, biomass gasifier, non-fossil fuel-based cogeneration, and municipal solid waste or refuse derived fuel-based projects. These proposals are anchored in the Renewable Energy Tariff Regulations, 2025, which define a three-year control period from FY 2025-26 to FY 2027-28. While the overarching regulatory framework applies across this period, BERC has retained the flexibility to review key cost parameters annually, particularly capital costs, to reflect evolving market realities.

For the first year of the control period, the Commission has determined generic levelised tariffs for the identified technologies. A levelised tariff represents an average cost of electricity over the entire operational life of a project. It incorporates capital investment, financing structure, operation and maintenance expenses, applicable fuel costs, and an allowed return on equity. This methodology is intended to provide tariff certainty to developers while ensuring that consumer interests remain safeguarded.

The consultative paper details the technical and financial assumptions underpinning the proposed tariffs. These include standard norms relating to plant life, plant load factor, auxiliary consumption, capital cost, debt-equity ratio, interest rates, depreciation, and annual operation and maintenance expenses. For fuel-dependent renewable projects, the tariff structure is bifurcated into fixed and variable components, with clearly defined assumptions on fuel price, escalation factors, calorific values, and conversion efficiencies. The treatment of tax-related benefits, including accelerated depreciation, has also been addressed, with tariffs presented both with and without such benefits to enhance clarity.

The proposed tariffs are applicable to eligible projects commissioned on or before 31.03.2026 and will continue to remain in force thereafter until revised through a subsequent tariff order. BERC has invited comments, objections, and suggestions from stakeholders and has proposed to conduct a public hearing prior to finalising the tariffs. Overall, the draft paper aims to provide regulatory certainty, promote investment in renewable energy, and enhance transparency in tariff determination for renewable power projects in Bihar. 

Copy of Draft Consultative Paper on Determination of Generic Levelised Tariff issued by BERC can be accessedhere.

RERC issues Rajasthan Electricity Regulatory Commission (Electricity Supply Code and Connected Matters) (Second Amendment) Regulations, 2025

Rajasthan Electricity Regulatory Commission (“RERC”) issues RERC Electricity Supply Code and Connected Matters (Second Amendment) Regulations, 2025 (“Amendment”). Vide the said Amendment it substitutes Sub Regulation 11.7(d) of the RERC Electricity Supply Code and Connected Matters, Regulations 2021 (“Principal Regulations”) which deals with recovery of old dues and mentions that any outstanding dues against any permanently disconnected connection shall be recoverable from another existing/ new connection in the name of the Owner/ Occupier by serving a notice of thirty (30) days. An opportunity of personal hearing and reply of the notice shall be given to the consumer and thereafter, a speaking order shall have to be issued by the licensee after due consideration of the reply of the notice as well as facts furnished during personal hearing. No recovery shall be affected/ disconnection made, without a speaking order. If the consumer is aggrieved with the speaking order, he shall be at the liberty to approach the appropriate consumer grievance redressal forums. 

It also substitutes Sub Regulation 11.8(b) of the Principal Regulations which deals with restoration of supply and mentions that an application for restoration of supply for HT/EHT consumers within two years from the date of disconnection and for others it shall be considered within 5 years from the date of disconnection. It also adds a proviso below Sub-Regulation 11.8 (d)  Principal Regulations. Sub-Regulation 11.8(d) of the Principal Regulations provides that the licensee shall restore supply of electricity to the applicant within six working hours of deposit of the sum and such additional interest as may have become due till the date of deposit and reconnection charges specified in the Schedule. In case restoration requires re-erection of lines/sub-station, then supply shall be restored. Charges for erection of lines/sub-stations, if any shall not be recoverable in case of restoration. Licensee shall also provide offline/online payment facility for deposition of due amount during public holidays and on confirmation will restore the supply even during public holidays. The proviso added by way of the Amendment mentions that applicant applying for reconnection will be considered as new consumer after expiry of period one year in case of HT/EHT consumers and two years in case of other consumers (other than HT and EHT) from the date of disconnection, if line material is removed by the licensee and has to bear the cost of line and plant.

The Amendment also amends Schedule I of the Principal Regulations. It adds a new schedule -I, 2A above the existing schedule I. It mentions that connection charges up to load of 150 kW to be applicable for domestic and non-domestic applicants whose premise falls within 300 meter of available 24 hour supply three phase LT network and for industrial and mix load applicants whose premise falls within 200 meters of available 24 hour supply three phase LT network. It provides the details regarding category of consumer, amount to be deposited and related Regulation for overhead line and for underground line. 

It further substitutes heading of the Schedule -1, 2.1 of the Principal Regulations as ‘Amount to be deposited with application for applicant not covered under 2A (Refer Regulation 6).’ It also substitutes heading of Schedule-1, 2.2 of the Principal Regulations as ‘ Additional amount to be deposited on demand for extension of distribution mains/supply line for applicant not covered under 2A (refer Regulations 7.2 & 7.3).’ It also substitutes Schedule -1, 2.2 (a) of the Principal Regulations and provides the details regarding category of consumer , amount to be deposited and related clause.

TERC has notified the Draft TERC (Electricity Supply Code) (Third Amendment) Regulations, 2025

The Tripura Electricity Regulatory Commission (“TERC”) has notified Draft TERC (Electricity Supply Code) (Third Amendment) Regulations, 2025 to incorporate the directives for the Ease of Living for consumers and to address specific operational and regulatory requirements as requested by Tripura State Electricity Corporation Limited (TSECL) and Tripura Renewable Energy Development Agency (TREDA). It is applicable to all the Grid-Interactive Solar Rooftop Photovoltaic systems with or without Battery Energy Storage Systems, which have been installed and commissioned in the areas of the DISCOMs in Tripura.

The amendments to the Principal Regulation i.e., TERC (Electricity Supply Code) Regulations, 2011, are as follows:

1. Amendment of Regulation 3.2 – Regulation 3.2 provides the voltages at which the supply has to generally be given on the basis of the contracted load.
2. Addition of proviso to Regulation 4.6 – Regulation 4.6 provides that in case of new connection the consumer shall bear Service Connection Charges and pay the security deposit (except in case of prepaid meters). A proviso has been inserted which provides that for electrified areas up to 150 kW, the new connection shall be fixed by the distribution licensee based on the load, category of connection sought, and average cost of connection of the distribution licensee; and the connection charges shall be paid at the time of application for new connection. Further, the connection charges shall be made available online by the licensee for connected load up to 150 kW.
3. Amendment of Regulation 5.7 – If supply to an HT/EHT consumer is given on an independent feeder for their exclusive use, the metering arrangement will be installed at the sub-station (sending end) on the high-voltage side instead of the consumer’s premises. Further, the meter installed at the licensee’s sub-station will be used exclusively for billing purposes.

The Draft TERC (Electricity Supply Code) (Third Amendment) Regulations, 2025 can be accessed here.

MERC extends the benefit of annual banking with Time of Day (TOD) base to all Small Hydro Plants in Maharashtra and also initiates a suo motu review of the MERC (Distribution Open Access) Regulations, 2016

In the case of Shree Tatyasaheb Kore Warana Sahakari Navshakti Nirman Sanstha Ltd. v. Maharashtra State Electricity Distribution Co. Ltd. and Ors., Case No. 88/2022 and Case No. 199/2022, the Petitioner had sought relaxation from the monthly banking provisions and the requirement for 15-minute time block energy adjustments for its Small Hydro Plants (“SHPs”). Vide order dated 31.12.2025, the MERC has permitted annual banking with Time-of-Day (TOD) base adjustment for its SHPs however, it has refused to exempt it from 15-minute metering as Special Energy Meters (SEM) are mandatory. 

The MERC has extended the benefit of annual banking to all other SHPs in Maharashtra. It has further, suo motu, initiated a review of the Distribution Open Access Regulations, 2016. The issues concerning banking for SHPs will be incorporated in the Draft Amendment Regulations and circulated for comments.

The MERC appointed an independent committee to study the operational, technical and financial aspects of SHPs, including water-release dependency, metering arrangements, and grid impact. After considering the contentions of the parties and the committee report, the Commission observed as follows:

1. The committee confirmed that 15-minute banking is critical and unmanageable for SHPs due to erratic monsoon patterns and the fact that power generation is secondary to irrigation.
2. SHPs offer natural benefits to the grid – improving voltage levels, providing local power during major grid failures, etc.
3. SHPs have several benefits – generation of clean and reliable power, minimal disturbance to local ecosystems, low operating and maintenance costs, long operational life, support to rural development, water management, etc. 
4. Targeted development of SHPs is not being achieved. For development of SHPs financial viability is necessary. 
5. Both the Government of India and Maharashtra promote SHPs through financial assistance, policy initiatives, technical support etc. The Act mandates promotion of renewable energy, which is reinforced by National policies.
6. Commission is empowered to allow banking to SHPs in absence of regulatory provisions under Section 181 of the Act.

The order dated 31.12.2025 can be accessed here.

MERC clarifies that rooftop areas shall be treated as ‘land’ where such disclosures are required for utility-scale solar PV power projects proposed to be developed on rooftop(s)

In the case of M/s. Musaddilal Properties Pvt. Ltd. (MPPL), Case No. 240/2025, vide order dated 31.12.2025, MERC has clarified that for utility-scale solar PV power projects proposed to be developed on rooftop(s) within the same compound, secured through valid lease, right-of-use, or no-objection arrangements, such rooftop areas shall be treated as satisfying references to ‘land’ wherever such disclosures are required under the applicable regulatory and procedural frameworks. However, this shall not be treated as an exemption or relaxation from compliance with applicable technical standards, safety requirements, grid codes, or any other applicable statutory or regulatory obligations.

In this case, the Petitioner, who is a consumer of MSEDCL, is engaged in the operation of a Logistics Park / Warehouse facility with substantial multiple rooftop areas for the establishment of the utility scale Solar PV project. The Petitioner intended that the project be developed a standalone, grid-connected station, with independent evacuation to the grid and without any electrical interconnection to its internal load. The configuration of the proposed project is technically and operationally equivalent to any other utility-scale Solar PV power project established on land. 

In this case, the Petitioner sought clarification on the regulatory treatment of utility-scale Solar PV Power Project intended to be developed by an independent developer on its multiple rooftop areas.

The Commission observed as follows:

1. The statutory mandate under Section 86(1)(e) of the Electricity Act, 2003 (“the Act”) requires the Commission to promote generation of electricity from renewable sources in a facilitative and purposive manner. Neither the Act nor Open Access Regulations are restrictive.
2. Rooftop structures form part of immovable property and are inseparable from land for regulatory and legal purposes, unless expressly excluded.
3. A restrictive interpretation of the term ‘land’ would defeat the object of renewable energy promotion and unnecessarily constrain innovative and efficient deployment of renewable energy projects.
4. Maharashtra Land Revenue Code, 1966 defines ‘land’ to include ‘things attached to the earth, or permanently fastened to anything attached to the earth’. Thus, structures on earth are also considered to be ‘land’, including rooftop.
5. Use of rooftops for utility-scale Solar PV project reduces the need for acquisition of land, which is a sacred resource and can be used for other socio-economical use. 
6. Such projects on rooftops need to be promoted.

The order dated 31.12.2025 can be accessed here.

MERC holds that banking adjustments are not applicable to inter-state transactions under the concerned Regulations

In Transition Sustainable Energy Services One Pvt. Ltd. v. Maharashtra State Electricity Distribution Co. Ltd., Case No. 128/2024, vide order dated 30.12.2025, the Maharashtra Electricity Regulatory Commission (“MERC”) has held that banking adjustments are not applicable to inter-state transactions under the MERC (Distribution Open Access) Regulations, 2016 and the MERC (Transmission Open Access) Regulations, 2016 (“Open Access Regulations”).

In this case, the Petitioner sought a clarification as to whether banking adjustments for renewable energy (RE) provided under the Open Access Regulations are applicable to inter-state transactions. The Petitioner contended that the Regulations do not differentiate between intra-state and inter-state transactions for consumers seeking supply from out-of-state renewable generators.

The Commission observed as follows:

1. The Regulations are specifically designed for intra-state transactions within Maharashtra. Banking of infirm renewable energy is a mechanism devised by State Commissions under their regulatory powers to balance intra-state generation and consumption. 
2. Once energy flows across state boundaries, it falls under the jurisdiction of the Central Electricity Regulatory Commission (“CERC”) and is governed by national frameworks such as the Indian Electricity Grid Code (IEGC) and CERC Inter-State Open Access Regulations. 
3. In inter-state transactions, such adjustments would require reconciliation across multiple State Load Despatch Centres and the Regional Load Despatch Centre, which will create significant complexity in accounting, metering, and settlement, especially with divergent banking rules in States. 
4. Forum of Regulators (FoR) had already deliberated on this and concluded that inter-state banking is not feasible. The rationale is that inter-state transactions are governed by schedule-based accounting and difference is settled through Deviation Settlement Mechanism (DSM).

The order dated 30.12.2025 can be accessed here.