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Govt Removes License Requirement for Power Generating Companies on Dedicated Transmission Lines

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The government has decided to do away with requirement of license to operate and maintain the dedicated transmission lines by power generating companies for them to connect to the grid. The Minister stated that the doing away with the requirement of license for dedicated transmission lines for industry will lead to ease of doing business for the industry, leading to faster industrial growth and more job creation.

This was announced by the Union Power Minister RK Singh while briefing reporters on Electricity (Amendment) Rules 2024, today in New Delhi. Releasing the Rules, Mr Singh stated that the steps taken by the Government has already brought down the losses of the distribution companies from 27 per cent in 2014 to 15.41 percent in 2022-23.

He added that the ministry is working to bring down the losses to 12 percent. The Union Minister said, these rules will ensure that their losses are further reduced and their viability increases so that they can provide better services to the consumers.

The Minister added that allowing such facility, a new category of bulk consumers would emerge in the country, benefiting from more affordable electricity and enhanced grid reliability. Mr Singh said that this is the latest in the whole series of reforms carried out in the power sector under the Modi government.

Talking about the other future initiatives under the Ministry, he said that an investment of 17.05 lakh crore rupees is in the pipeline in power and renewable energy sector. He added that since 2014, around 16.93 lakh crore rupees of investment has been done in the power sector in India.

He also said that India’s power generation capacity will increase to over 800 GW by 2030 from about 428 GW at present and India has planned to bid out 50GW of renewable energy projects every year.

In a statement, the Ministry said, now the consumers, having more than a specified quantum of load and Energy Storage Systems (ESS) are allowed to establish, operate and maintain dedicated transmission lines themselves without the requirement of licence.

As per the new rule, a power generating company or a person setting up a captive generating plant or an Energy Storage System or a consumer having load of not less than twenty five Megawatt in case of Inter State Transmission System and ten Megawatt in case of Intra-State Transmission System shall not be required to obtain license for establishing, operating or maintaining a dedicated transmission line to connect to the grid.

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