India: Oil, Gas & Electricity

The Draft Regulations represent a significant regulatory shift towards a capacity-based access model aligned with evolving electricity market structures, increasing renewable energy penetration, growth of green open access transactions and the emergence of energy storage systems.

One of the key issues before the Ld. Madhya Pradesh Electricity Regulatory Commission (“MPERC”) was whether MB Power was entitled to gross-up its Return on Equity (“RoE”) notwithstanding the fact that, at the corporate level, it had not paid income tax during certain years owing to losses and unabsorbed depreciation arising from its other businesses. MPPMCL opposed the claim, inter alia, on the grounds that the claim was barred by limitation and that grossing-up could not be permitted in the absence of actual tax payment by the corporate entity.

The International Energy Agency has since described the resulting disruption as the largest to the global oil market in its history. Brent crude hit its peak at USD 126 per barrel in March 2026 and is presently at approximately USD 80, and over 2,000 ships and 20,000 mariners remain stranded in the Persian Gulf.

The Ministry of New and Renewable Energy (MNRE), Government of India (GoI), vide Office Memorandum dated 25 May 2026 bearing No. 238/10/2025-P AND RA (OM), has proposed a structured One-Time Relief Package (Proposed Relief Package) to address the issue wherein Letters of Award (LoAs) have been issued by Renewable Energy Implementing Agencies (REIAs) as intermediary procurers but Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) remain unsigned as on 30 April 2026.

The Food Safety and Standards Authority of India has taken a significant step in fortifying the country’s food safety architecture by notifying the Food Safety and Standards (Contaminants, Toxins and Residues)...

India’s renewable energy market has now entered a more structured regulatory phase with the issuance of the Central Electricity Regulatory Commission (“CERC”) Guidelines for Virtual Power Purchase Agreements (“VPPAs”) dated 24 December 2025 and the subsequent Statement of Reasons issued on 27 April 2026.

The Delhi HC directed the CIC to re-adjudicate the question afresh, after affording a full opportunity of hearing to all concerned parties and requested the CIC to decide the Second Appeal expeditiously, not beyond 6 (six) months. The ruling carries significant implications for private electricity distribution licensees across India.

Arnold J. Toynbee's "Challenge and Response" theory from A Study of History provides a valuable framework for understanding civilizational progress.

SEBI has introduced significant amendments to InvIT, AIF, and REIT regulations, lowering credit risk thresholds for liquid mutual funds and expanding investment flexibility.