This edition captures the regulatory developments and major judicial pronouncements pertaining to renewable energy, roads, electricity, power and oil and gas sectors. Through this newsletter, we seek to highlight the updated regulatory and legal frameworks and equip stakeholders with strategic insights.
Judicial Pronouncements
1. Supreme Court rules that land acquired by government for public purpose can't be nullified through private agreements
A division bench of the Supreme Court ("SC"), in a judgment dated March 20, 2025, held that once the government acquires land for public purposes using its sovereign power, third-party rights created after the acquisition cannot override it. The land which was the subject of the dispute was acquired by the government for establishing a grain market in Narela, Delhi. However, the respondent claimed ownership of part of the concerned land and filed a writ petition before the Delhi High Court ("HC"). The Board resolved to settle the matter out of court and entered into an agreement with the respondent, agreeing to return half of the disputed land while retaining the rest. The writ petition was disposed of based on this agreement.
However, realizing that the land could not be returned via private settlement, the Board filed an application to recall the HC's order. The respondent then sought arbitration under the agreement, and an arbitral award was passed in her favor, upholding the agreement. Aggrieved by the award, the Board filed a petition before the Delhi HC, which dismissed the petition on July 1, 2013, upholding the award in its entirety. Its further appeal was also dismissed by a Division Bench on September 27, 2013. The Board then filed Special Leave Petition (SLP), from which the present appeal arises.
The SC, however, held that when the State uses its sovereign power of eminent domain and acquires land for a public purpose, such an exercise cannot be set at naught by the beneficiary of such acquisition, viz., the statutory Board, by entering into a private agreement shortly after the acquisition so as to reverse the usage of the power of eminent domain by the State. The Court further emphasized that "Validating this dubious enterprise by a statutory beneficiary of a compulsory acquisition would be nothing short of permitting a fraud on the exercise of such sovereign power by the State."
The SC's ruling is expected to reduce delays in infrastructure projects caused by prolonged litigation over government-acquired land.
Case Title: Delhi Agricultural Marketing Board, through its Chairman vs. Bhagwan Devi (Dead), through her LR., 2025 INSC 367
2. Karnataka High Court strikes down the Central rules on green energy open access
On December 20, 2024, the High Court of Karnataka invalidated the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 ("Central Rules"), framed by Central Government in exercise of its power conferred under Section 176(1) and 176(2)(z) of the Electricity Act, 2003 ("Act"). The court decided that the Central Government lacked the authority under the Act, to frame the aforesaid rules, as the Act explicitly empowers the appropriate regulatory commission to regulate open access to green energy. The court further stated that if the Act specifically confers the power to grant and regulate open access with the appropriate commission and excludes the Central Government from playing any role in the matter pertaining to granting open access, the Central Government cannot override this by placing reliance on the residuary rule-making powers. If the substantive provision of the statute specifically enables a particular authority to monitor all aspects of a particular matter, another rule-making authority cannot frame rules which have the effect of amending the substantive provision itself. Accepting the Central Rules framed by the Central Government would effectively nullify the State Commissions' powers to regulate open access for renewable energy, as conferred under Section 42(2) of the Act. Such delegated legislation would amount to an impermissible amendment of a substantive statutory provision, which is legally untenable.
The court also struck down the Karnataka Regulatory Commission (Terms and Conditions for Green Energy Open access) Regulations, 2022, since they were framed by the Karnataka Electricity Regulatory Commission ("KERC") solely to comply with the now-invalidated Central Rules and not in exercise of the powers conferred to the commission independently. Consequently, the court directed KERC to frame appropriate regulations if it so desires in the matter of granting of open access to green energy generators and consumers. During formation of such regulations, KERC will only be guided by the National Electricity Policy and the tariff policy framed by the Central Government and shall independently consider the interests of all the stakeholders concerned.
Case Title: Brindavan Hydropower Private Limited and Ors. vs. Union of India and Ors., MANU/KA/4227/2024
3. APTEL affirms primacy of Atomic Energy Act, excludes CERC's jurisdiction over Nuclear Power Tariff Disputes
The Appellate Tribunal for Electricity ("APTEL") vide its order dated March 27, 2025, ruled that the Central Electricity Regulatory Commission ("CERC") lacks jurisdiction to regulate tariff in matters related to the fixation of rates for and regulation of supply of electricity from atomic power stations and consequently, it cannot adjudicate disputes related to the same. APTEL held that the Atomic Energy Act, 1962 ("Act") instead grants exclusive authority to the Department of Atomic Energy to fix the rates and regulate the supply of electricity generated from atomic power stations.
In view of the non-obstante clause in Section 22(1) and 28 of the Act, and since Section 173 of the Electricity Act, 2003 gives the Act an overriding effect over the provisions of the Electricity Act, 2003 to the extent the latter is inconsistent with the former, it is evident that the power of the appropriate commission to determine tariff for supply of electricity by a generating company to a distribution licensee under the Electricity Act, 2003 and the power conferred on the CERC to regulate the tariff of generating companies owned or controlled by the Central Government under the relevant provisions of the Electricity Act, 2003 would not extend to supply of electricity by a generating company to a distribution licensee from an atomic power station.
Case Title: Nuclear Power Corporation of India vs. CERC & Gujarat Urja Vikas Nigam Ltd., APPEAL NO. 134 OF 2024 & IA NO. 350 OF 2024
4. CERC dismisses Juniper Green Energy's petition for return of bank guarantee
The CERC vide its order dated March 24, 2025, dismissed Juniper Green Energy's petition, which sought a declaration for the return of its bank guarantee submitted as earnest money deposit, as the bid validity period had expired. The CERC held that the request was untenable, as Juniper remained contractually bound under the terms of the bid.
The bid validity period for the development of a 50 MW wind power project was initially valid until March 15, 2024, and was subsequently extended by mutual agreement to June 30, 2024. Execution of the power purchase agreement ("PPA") with Damodar Valley Corporation ("DVC") was subject to tariff adoption by CERC. DVC filed the tariff adoption petition on April 23, 2024 (i.e., before the expiry of the extended bid validity date) and the tariff was adopted on August 01, 2024. Despite this, Juniper contended that its bid had expired on June 30, 2024 and it was therefore not obligated to execute the PPA. However, on August 5, 2024 and August 8, 2024, the Respondents called upon Juniper to execute the PPA and submit the requisite bank guarantee and success charges. Juniper, through an email dated August 12, 2024, requested DVC to withdraw its earlier communication and defer execution of the PPA.
The Commission ruled that Juniper was contractually obligated to execute the PPA with DVC after the tariff was adopted on August 01, 2024. The relevant provisions of the request for selection document explicitly tied execution of power purchase agreement to tariff adoption by CERC within 60 Days after the issue of letter of award, and Juniper had expressly accepted these terms. Furthermore, the Commission noted that the following tariff adoption, the Respondents promptly sought execution of the PPA, and it was Juniper that declined to proceed on August 12, 2024. The Commission further found no merit in Juniper's claims of financial hardship and increased project costs as grounds for refusing to execute the PPA. It was also acknowledged that, due to its own internal constraints, Juniper re-submitted documentation under the name of M/s Juniper Green Stellar Private Limited with a delay of 41 days, superseding its earlier submission dated March 21, 2023. This delay impacted the document verification process. Therefore, the Commission concluded that Juniper had failed to make out a case in its favour.
Case Title: M/s. Juniper Green Energy Pvt. Ltd. vs. M/s Damodar Valley Corporation and REC Power Development and Consultancy Limited, Petition No. 275/MP/2024 along with IA 64/2024
5. MERC upholds Solar Generators' Appeal, strikes down MSEDCL's Wheeling Charges
The Maharashtra Electricity Regulatory Commission ("MERC") vide its order dated March 20, 2025, addressed the improper levy of wheeling charges and losses by the Maharashtra State Electricity Distribution Company Limited ("MSEDCL") on certain solar power generators and aligning with previous judicial precedents, held that such charges cannot be imposed when MSEDCL's distribution system is not utilized for transmission.
The petitioners, solar generators supplying power via the transmission system had challenged MSEDCL's imposition of wheeling charges and deductions of units as wheeling losses, even though no part of MSEDCL's network was used. MERC found the charges unjustified and directed MSEDCL to refund the collected amounts along with applicable interest and to adjust the deducted units in future bills of the affected open access consumers.
By rejecting MSEDCL's attempt to broaden the definition of 'distribution system' to include auxiliary services, the Commission reinforced protections for open-access solar generators and consumers. The ruling is expected to reduce costs for transmission-connected renewable energy projects and further support growth in the clean energy sector.
Case Title: TP Solapur Saurya Ltd and Ors vs. Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) and Ors., Case No. 100 of 2024
Regulatory Updates
6. Green Hydrogen Certification Scheme of India
Pursuant to the National Green Hydrogen Mission, the Ministry of New and Renewable Energy ("MNRE"), on April 29, 2025, issued the Green Hydrogen Certification Scheme of India ("GHCI"). The GHCI intends to cover all stages of green hydrogen production up to the compression, purification and on-site storage of hydrogen for transport, excluding off-site transportation and storage, conversion into hydrogen carriers, reconversion, and utilization. The green hydrogen certificate issued under GHCI serves as a label which guarantees the origin of the green hydrogen production as well as chain of custody. This certificate can also be used for the purpose of claiming carbon credits under the Carbon Credit Trading Scheme. Key highlights include:
- A green hydrogen final certificate is mandatory for producers receiving government support or selling in India, with exemptions for small-scale (facilities with an annual production capacity of 10 tons or less) or 100% export-only producers (who do not avail any incentives or concessions from the central or state government).
- Only electrolysis and biomass conversion are recognized as 'eligible hydrogen production pathways.' These production pathways have the potential to produce hydrogen that is compliant with the GHCI.
- Only electricity demonstrably sourced from renewable energy qualifies for certification.
The scheme aims to create a robust framework for certifying green hydrogen production and ensuring transparency, traceability, and market credibility.
Read More: Green Hydrogen Certification Scheme of India
7. Revised draft guidelines for installation of prototype wind turbine models
On April 09, 2025, MNRE issued draft revised guidelines for installation of prototype wind turbines in India which purports to replace the existing guidelines that were issued on May 22, 2012, including amendments of September 20, 2012 and June 06, 2016. These draft guidelines will be implemented by the National Institute of Wind Energy ("NIWE"), Chennai. Proposed revisions include the following:
These guidelines are applicable to all manufacturers intending to install prototype wind turbine model and seeking grid synchronization.
Manufacturers must submit required documents to NIWE and provide a prototype certificate along with contracts for type testing and certification from international accredited testing and certification bodies.
- The prototype turbines must be owned by the manufacturer, not sold, and made only with new, unused components.
- The prototype certificate is valid for up to 3 years (extendable subject to fulfilment of certain conditions), during which regular maintenance is mandatory.
- A yearly letter from the certification body confirming maintenance is required, or grid disconnection may occur.
- Testing and type certification must be completed within 3 years, and commissioning must happen within 18 months of NIWE's recommendation.
- A commissioning report from the State utility/SNA must be submitted to NIWE post-synchronization.
These revised guidelines aim to facilitate the installation of a limited number of prototype wind turbines for promoting testing and certification in the country.
Read More: Revised draft guidelines for installation of prototype wind turbine models
8. Maharashtra Electric Vehicle Policy 2025
The Government of Maharashtra has approved the Electric Vehicle Policy 2025 ("EV Policy 2025"), which replaces the earlier Maharashtra EV Policy, 2021. It introduces targeted incentives to encourage adoption among consumers and businesses, while also expanding supporting infrastructure. Key highlights include:
A 10% subsidy on the base cost is available for passenger mobility vehicles such as electric two-wheelers, three-wheelers, private four-wheelers, buses operated by the state transport corporation, and vehicles under municipal transport undertakings.
A higher 15% subsidy is extended to electric goods carriers (three- and four-wheelers), electric tractors for agricultural use, single axis cutting machines for agriculture purposes, and large-capacity passenger EVs.
- Exemption from motor vehicle tax and registration certificate/ renewal charges for all EVs sold and registered in the state of Maharashtra.
- Full exemption from toll charges for all four-wheeled EVs and electric buses operating on the Mumbai Pune Yashwant Rao Chavan Expressway, Samruddhi Mahamarg, and the Shivdi–Nhava Sheva Atal Setu.
- Four-wheeler EVs are also provided with a 50% discount on toll fees on other state and national highways managed by the Public Works Department.
- Installation of EV charging stations every 25 kilometers along state and national highways.
This new policy will remain in force till 2030 and aims to accelerate the state's transition to zero-emission transport by the end of 2030.
9. Maharashtra Aggregator Policy
In addition to the EV Policy 2025, the Maharashtra Cabinet has approved a separate Aggregator Policy to regulate app-based mobility operators such as Ola, Uber, and Rapido. The key provisions include:
- The aggregators will have to obtain proper licences and adhere to various safety and technical requirements that include real-time GPS tracking of vehicles, emergency contact integration, background checks for drivers, passenger and driver insurance, and having an efficient grievance redressal mechanism.
- Women opting for ride-pooling services will be able to choose rides with only women drivers and passengers.
- Additional requirement to comply with the Information Technology Act, 2000.
This policy introduces a formal licensing regime and safety compliance measures to protect passenger interests and ensure that app-based transport aggregators operate responsibly.
Similar regulatory frameworks have been introduced at both central and state levels. The Ministry of Road Transport and Highways has issued the Motor Vehicle Aggregator Guidelines, 2020 at the central level. States such as Karnataka and Kerala have implemented their own regulations, namely, the Karnataka On-Demand Transportation Technology Aggregators Rules, 2016, and the Kerala State Motor Vehicle Aggregator Policy, respectively. More recently, the Goa government released the Goa Transport Aggregator Guidelines, 2025 in draft form on May 20, 2025, inviting public comments.
10. Amendment to PM E-DRIVE Scheme
The Ministry of Heavy Industries issued significant amendments to the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, notified via the Official Gazette on March 3, 2025. As per the revised guidelines, a 100% Domestic Content Requirement has been mandated for 18 critical EV components across electric two-wheelers, three-wheelers, and e-buses. Original Equipment Manufacturers must now ensure local manufacturing of these components in order to remain eligible for subsidies under the PM E-DRIVE scheme, which operates under the broader FAME-II (Faster Adoption and Manufacturing of Electric Vehicles in India) programme. The revised Phased Manufacturing Programme ("PMP") eligibility criteria will be implemented in phases.
To further reduce import dependence, the revised guidelines also prohibit the import of Completely Knocked Down kits for the notified PMP components from a single foreign supplier. These amendments tighten domestic content requirements under the PMP, with the objective of enhancing local production of electric vehicle components in India.
11. Revised SHAKTI Policy for Coal Allocation to Power Sector
The Cabinet Committee on Economic Affairs, on May 07, 2025 approved the revised SHAKTI (Scheme for Harnessing and Allocating Koyala Transparently in India) Policy for coal allocation to the power sector, replacing the nomination-based system with a more transparent, market-oriented mechanism i.e., auction/ tariff-based bidding. Coal linkages to thermal power plants of Central Sector/State Sector/ Independent Power Producers will now be granted through only two Windows, namely - Coal Linkage to Central Gencos/States at Notified price (Window–I) and Coal Linkage to all Gencos at a Premium above Notified price (Window- II).
The revised policy aims to enhance domestic coal use, reduce import dependency, and support more efficient power generation. It is expected to improve coal availability, boost mining activity, generate higher state revenues, and support affordable electricity and energy security goals.
12. MoRTH Tightens Rules for Low Bids on Highway Projects
The Ministry of Road Transport and Highways ("MoRTH"), vide circular dated April 30, 2025, introduced revised norms for seeking additional Performance Security from bidders quoting abnormally low prices in tenders for national highway projects. Under the revised mechanism, (i) where the bid price is below 10% but not below 20% of the project cost put to bid, the additional performance guarantee/security percentage shall be incremented by 0.1% for every percentage of bid price below 10% of the project cost put to bid starting at 11% with the additional bid performance guarantee being 0.1% and (ii) where the bid price is 20% or more below of the project cost put to bid, the additional performance guarantee percentage shall be incremented by 0.2% for every percentage of bid price below 20% of the project cost put to bid in addition to 1% of the bid price.
This additional security will be applied on the bid price and will form part of the overall performance security. The final amount will be rounded up or down based on decimal values.
The revised framework comes into force with immediate effect, and all implementing agencies under MoRTH have been directed to adhere strictly to the updated provisions. The changes are expected to curb the trend of abnormally low bids and ensure better project quality and timely execution.
13. Bill on protection of interests in aircraft objects
The Parliament, on April 16, 2025, approved the Protection of Interests in Aircraft Objects Bill, 2025 ("Bill") to give effect to (i) Convention on International Interests in Mobile Equipment (also known as Capetown Convention of 2001) and (ii) its Aircraft Protocol, both acceded to by India in 2008. The Convention and its Protocol ensures uniformity and creditor protection for high-value aviation assets like aircraft, helicopters, and engines. The key provisions are:
- The Directorate General of Civil Aviation ("DGCA") is designated as the Registry Authority for asset registration and de-registration.
- Debtors must submit records of dues to DGCA; creditors can reclaim assets within 2 calendar months of default or a mutually agreed upon period, whichever is earlier, after notifying DGCA.
- The central government, any public service provider in India, or an inter-governmental organization of which India is a member, retains the authority to detain aviation assets in case of unpaid service dues.
- The Bill overrides conflicting laws and gives High Courts jurisdiction over related claims.
- The central government is empowered to frame rules for implementing the Convention and Protocol. It also empowers the central government to make rules on: (i) manner in which DGCA will issue directions to implement the Convention, and (ii) manner in which debtors and creditors will fulfil their respective obligations.
The Bill will help reduce risks and costs for aircraft leasing by airlines in India. It aims to align India's aircraft leasing and financing ecosystem with global standards and marks a critical step in deepening investor confidence in India's rapidly growing aviation market.
14. Oilfields (Regulation and Development) Amendment Act, 2025
The government has enacted the Oilfields (Regulation and Development) Amendment Act, 2025, on March 28, 2025, amending the existing Oilfields (Regulation and Development) Act, 1948 ("Oilfields Act"), to introduce a more liberal framework for oil and gas exploration. The key modifications include:
- The amendment expands the definition of "mineral oils" to include a wider range of hydrocarbons like crude oil, natural gas, petroleum, condensate, coal bed methane, oil shale, shale gas, shale oil, tight gas, tight oil, and gas hydrates.
- The amendment replaces the term 'mining leases' with 'petroleum leases', which will now govern grant, extension, and renewal of petroleum leases, including setting area limits and lease periods.
- The amendment to Section 4 of the Oilfields Act mandates that "no person shall undertake any operation in any part of India or in its territorial waters, continental shelf and exclusive economic zone for the purposes of prospecting, exploration, development or production, making merchantable, carrying away or disposing of mineral oils, except under a valid lease granted under this Act and the rules made thereunder:"
The amendment is aimed at enhancing transparency, encouraging private participation, and attracting investments in the petroleum sector.
15. Draft of Petroleum and Natural Gas Rules, 2025
The Ministry of Petroleum and Natural Gas has invited feedback on the draft Petroleum and Natural Gas Rules, 2025. Amongst other aspects being dealt with such as petroleum lease royalty on mineral oils, stabilization and unitization, the draft rules also provides that in the event of a national emergency, the government will hold pre-emption rights over mineral oils, refined petroleum or petroleum or mineral oil products produced from the crude oil or natural gas extracted from the leased area, or of the crude oil or natural gas where the lessee is permitted to sell, export or dispose of it without it being refined within India.
While the rules do not define "national emergency," the Government of India will have sole authority to determine its constitution of such emergency, in respect of mineral oils, and its decision will be final. When exercising this right, the government will compensate the lessee at the prevailing fair market price for the crude oil, natural gas, or petroleum products taken under pre-emption. The inclusion of such rights over crude oil as well as natural gas, is intended to help the government prioritize national interests and ensure public welfare during emergencies.
16. Ministry of Road, Transport & Highways (MoRTH) sets timelines for Land Acquisition and Environmental Clearances in Highway Projects
MoRTH vide its notification dated May 06, 2025 stressed on the importance of synchronizing the project approval, award and appointed date declaration activities with the milestones for land acquisition procedures and environment, forest and wildlife clearances. The milestones set out in this notification are to be strictly adhered to while awarding National Highway projects in case of any project for which tenders are to be issued w.e.f June 01, 2025:
The move is aimed at avoiding delays in the construction of National Highway projects after award and prevent contractual disputes as well as time and cost overruns.
17. BEE releases Guidelines for Earning Carbon Credits Through Offset Mechanism
Under the Carbon Credit Trading Scheme, 2023 ("CCTS"), the Bureau of Energy Efficiency ("BEE") in March 2025, issued the "Detailed Procedure for the Offset Mechanism," enabling non-obligated entities to register projects that reduce, avoid, or remove greenhouse gas ("GHG") emissions. Upon validation and verification, these projects can earn Carbon Credit Certificates ("CCCs"). This framework allows voluntary participation from sectors outside the compliance mechanism, incentivizing climate action in areas previously untapped. To support this, the Government of India has now approved the Detailed Procedure for the Offset Mechanism and eight different methodologies under Offset Mechanism.
Eight methodologies under Offset Mechanism, approved by Central Government, include methodologies for renewable energy (including Hydro and Pumped storage), green hydrogen production, industrial energy efficiency, landfill methane recovery, and mangrove afforestation & reforestation. These methodologies are expected to support a wide range of climate-friendly projects for voluntary carbon credit generation.
These developments mark a significant step towards a robust carbon market in India and driving broader emission reductions.
18. National Critical Mineral Mission ("NCMM")
The Government of India, on April 09, 2025, launched the NCMM to build a self-reliant ecosystem for critical minerals essential to India's energy transition and economic growth. As part of the Mission, the Geological Survey of India ("GSI") has been assigned 1,200 exploration projects to be completed between 2024–25 and 2030–31. The NCMM aims to ensure the availability of critical minerals through domestic exploration and international partnerships, while also fostering private sector participation. It focuses on strengthening the entire value chain, from mining and beneficiation to processing and recycling, by enhancing India's technological, regulatory, and financial ecosystems. The mission also emphasizes skill development, innovation, and streamlined regulations to support clean energy technologies and strategic sectors.
This initiative is expected to boost domestic mineral production and accelerate the country's progress towards sustainable development and energy security.
19. Registration of LNG terminals with PNGRB
On May 08, 2025, the Petroleum and Natural Gas Regulatory Board (PNGRB) Act, 2006 notified the Petroleum and Natural Gas Regulatory Board [Registration for Establishing and Operating Liquefied Natural Gas (LNG) Terminals] Regulations, 2025 ("LNG Rules"). These rules are applicable to an entity: (a) that is desirous of establishing or operating an LNG terminal; and (b) which has already established or is operating an LNG terminal. Any entity desirous of establishing or operating an LNG terminal is required to submit an intimation along with details for such purpose to the Board before its final investment decision. The Board, on acceptance of the entity's application, may issue a certificate of registration allowing the entity to establish or operate or for both, an LNG terminal for 30 years.
If such registered entity is involved in restrictive trade practice or defaults in fulfilment of any obligation under Petroleum and Natural Gas Regulatory Board (Technical Standards and Specifications including Safety Standards for Liquefied Natural Gas Facilities) Regulations, 2018 or fails to adhere to conditions specified under the issued certificate of registration, the entity's certificate of registration may immediately be suspended for a period of 3 months, which is extendable, subject to the Board's view. However, the entity shall be allowed to rectify the default within such suspension period.
The LNG Rules intend to lay down a framework with its main focus on registration and supervision of LNG terminals, promotion of competition among entities and prevention of infructuous investments. These rules also aim to ensure equitable and adequate distribution of natural gas availability across the country, protection of customers' interest in terms of availability of natural gas and accelerate the availability of natural gas pipeline infrastructure for evacuation of re-gasified Liquefied Natural Gas from the proposed LNG terminal.
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