JANUARY 2023

The Energy Conservation (Amendment) Act, 2022 was notified

The Energy Conservation (Amendment) Bill, 2022 was passed by the Rajya Sabha on December 12, 2022, received the assent of the President on December 19, 2022, and was subsequently published for general information by the Ministry of Law and Justice.1 In January 2023, the Ministry of Power ("MoP") released the notification for enforcement of the Energy Conservation (Amendment) Act, 2022 (the "EC Amendment").2 Among other things, the EC Amendment amends the Energy Conservation Act, 2001 to empower the central government to specify a carbon credit trading scheme. Designated consumers and other obligated entities may be required to meet a proportion of their energy needs from non-fossil sources. A new building code called, called the Energy Conservation and Sustainable Building Code, will apply to office and residential buildings which have a connected load of 100 kilowatts ("KW") or above. Further, energy consumption standards may be specified for vehicles and ships. The failure to comply with such standards will be punishable with a penalty of up to INR 1 million. Non-compliance in case of industrial units or vessels will attract an additional penalty of up to twice the price of oil equivalent of energy consumed above the prescribed norm. Vehicle manufacturers in violation of fuel consumption norms will be liable to pay a penalty per unit of vehicles sold at INR 25,000 (for non-compliance up to 0.2 liter per 100 km) and INR 50,000 (for non-compliance exceeding 0.2 liter per 100 km).

The central government notified that all the provisions of the EC Amendment will come into force with effect from January 1, 2023.

The Union Cabinet approved the National Green Hydrogen Mission3

In a press release dated January 4, 2023, India's Ministry of New and Renewable Energy ("MNRE") announced that the Union Cabinet had approved the National Green Hydrogen Mission ("NGHM").4 MNRE, the nodal ministry in this regard, remains responsible for overall coordination and implementation of such mission. The overarching objective is to make India a global hub for the production, use, and export of green hydrogen ("GH") along with its derivatives, thus enabling the country to achieve a globally significant role with regard to GH in terms of both technology and market share.

Background: India's Energy Transition through GH

A transition to GH and green ammonia ("GA")5 has been identified as one of the major requirements for India to reduce emissions. For instance, in a report published in June last year by NITI Aayog (the "NITI Aayog Report"),6 it was emphasized that GH will be crucial for achieving India's decarbonization goals, especially in the harder-to-abate sectors such as those related to fertilizers, refining, methanol, maritime shipping, iron & steel, and transport. The NITI Aayog Report had concluded that with emerging global momentum on hydrogen ("H3"), the country can leverage this opportunity to strive towards energy security and economic development.

GHP

The Indian government has considered various policy measures to facilitate the transition away from fossil fuels, where GH can be used both as an energy carrier and a chemical feedstock. In that regard, in August 2021, India had announced the launch of its 'National Hydrogen Mission' ("NHM") to scale up GH production and align India's energy transition with global best practices in technology, policy, and regulation. The NHM aimed to support the government's efforts in meeting climate targets and making India a GH hub. Further, a little more than a year ago (in February 2022), the Ministry of Power ("MoP") had announced the Green Hydrogen Policy ("GHP") as the first tranche of instruments to bolster efforts in this direction.

The GHP includes the following key understandings:

  • GH and GA will be defined as such H3 and ammonia ("NH3"), respectively, which is produced through water electrolysis using renewable energy ("RE") – including stored/banked RE – and will include H3/NH3 produced from biomass as well.
  • Inter-state transmission charges will be waived for a period of 25 years for producers of GH and GA in respect of projects commissioned before June 30, 2025.
  • GH/GA can be manufactured by a developer by using RE which is:
    1. utilized from a co-located RE plant; or
    2. sourced from a remotely located RE facility – whether the latter is set up by the same developer or by a third party; or
    3. procured from a power exchange.
  • GH/GA plants will be granted 'open access' to source RE within 15 days of receipt of a complete application in this regard. The charges for open access will be calculated and levied pursuant to corresponding rules.

The open access rules of 2022 in respect of green energy (the "Open Access Rules")7 were notified by the MoP in June last year. The Open Access Rules, inter alia, seek to increase both the ease and scale of consumer access to green energy.8 In the pre-open access era, Indian consumers could procure power mainly from state-owned electricity distribution companies ("discoms"). Over time, the government has allowed consumers with a minimum load requirement to buy electricity directly from power producers. Importantly, the new rules now seek to further democratize the regime (where large users can pick a supplier of choice among multiple options) by enabling increased private participation in the distribution business.9

  • RE may be banked for a period of 30 days, as long as such RE is used for making GH or GA. The charges for banking will be fixed by the appropriate state electricity regulatory commission ("SERC"). However, such charges cannot exceed the cost differential between: (1) the average tariff of RE bought by the distribution licensee during the previous year; and (2) the average market clearing price ("MCP") in the Day-ahead Market' ("DAM")10 during the month in which such RE is banked.
  • The Electricity (Transmission system planning, development and recovery of Inter State Transmission charges) Rules, 2021 prioritize the granting of approvals related to the connectivity between: (1) power generation and GH/GA manufacture (on the one hand), and (2) inter-state transmission services for such RE, as established for the purpose of manufacturing GH/GA (on the other hand).
  • Land in RE parks can be allotted for the manufacture of GH/GA. The Indian government proposes to set up manufacturing zones in this regard. Accordingly, GH/GA plants can be set up in any of such manufacturing zones.
  • Further, GH/GA manufacturers will be permitted to set up bunkers near ports for storing GA for the purpose of export and/or use by shipping. The land for such storage will be provided by the respective port authorities at applicable charges.
  • The RE consumed for the production of GH/GA will count towards renewable purchase obligations ("RPO") of the consuming entity. The RE consumed by the power producer beyond such requirement under India's RPO regime will count towards RPO compliance of the area-specific discom – based on the location of such project.

Pursuant to Section 86(1)(e) of the (Indian) Electricity Act, 2003, as amended from time to time (the "Electricity Act"), certain categories of 'obligated entities' (such as discoms, open access consumers, captive power producers) are required to purchase a minimum percentage of electricity from RE sources as a mandatory share of their total power consumption. Such obligations are known as RPOs. In addition, a legislative bill that seeks to amend the Electricity Act (the Electricity (Amendment) Bill, 2022) was introduced in Parliament last August (the "Electricity Bill"). The Electricity Bill imposes penalties for non-compliance with RPOs.

  • Distribution licensees may also procure and supply RE to GH/GA manufacturers in their respective states. In such cases, however, the distribution licensee concerned can only charge the cost of procurement, along with applicable wheeling charges and a small margin, as determined by the corresponding SERC in this regard.
  • The MNRE will establish a single portal for all statutory clearances and permissions required for the manufacture, transportation, storage, and distribution of GH/GA. The concerned agencies/authorities will be requested to provide the clearances and permissions within a specific deadline, preferably within a period of 30 days from the date of application.
  • In order to achieve competitive prices, the MNRE may aggregate demand from different sectors and conduct a mixed auction, inviting consolidated bids for GH/GA procurement through any of the designated implementing agencies.

NGHM

The intended outcomes of NGHM11 by the end of the decade include the following:

  • Development of an annual production capacity of at least 5 million metric tonnes ("MMT") of GH, with an associated RE capacity addition of 125 gigawatts ("GW")
  • Over INR 8 trillion in investments
  • Creation of over 0.6 million jobs
  • A cumulative reduction in fossil fuel imports of over INR 1 trillion
  • An abatement of nearly 50 MMT of annual greenhouse gas emissions.

In addition, the expected benefits from NGHM involve: (i) the creation of export opportunities for GH and its derivatives; (ii) decarbonization of the industrial, mobility, and energy sectors, respectively; (iii) a reduced dependence on imported fossil fuels and feedstock; (iv) the development of indigenous manufacturing capabilities; (v) the creation of ancillary employment opportunities; and (vi) the development of cutting-edge technology.

Components of NGHM

The initial financial outlay for NGHM will involve an aggregate amount of approximately INR 200 billion (about USD 2.2 billion), including components such as: (i) strategic interventions for a transition to GH (the "SIGHT" program), involving the bulk of the outlay (INR 175 billion); (ii) pilot projects involving INR 15 billion; (iii) INR 4 billion for research and development ("R&D"); and (iv) another INR 4 billion for miscellaneous components of the mission. The MNRE will formulate such schemes and guidelines as necessary to facilitate the implementation of each such individual component.

The SIGHT program involves financial incentive mechanisms targeting both domestically produced electrolyzers and GH. The pilot projects are expected to be undertaken in emerging end-use sectors and production pathways. Further, regions capable of supporting large scale production and/or utilization of H3 will be identified and developed as GH hubs.

SIGHT

Initially (i.e., until 2029-30), the SIGHT program will consist of two distinct financial incentive mechanisms: (i) incentives for manufacturing of electrolyzers; and (ii) incentives for GH. Depending upon markets and technology development, specific incentive schemes and programs will continue to evolve as the NGHM progresses.

In order to ensure both quality and performance of the underlying equipment, the eligibility criteria related to participation in competitive bidding for procurement of GH will require projects to utilize only such equipment as approved by the Indian government, pursuant to pre-specified parameters.

Pilot Projects

The pilot projects under NGHM involve sector-specific projects related to (i) low carbon steel; (ii) long-range heavy mobility; as well as (iii) ports and shipping. Other areas of focus include decentralized energy applications, hydrogen production from biomass, H3 storage technologies, etc.

GH Hubs

The NGHM will identify and develop regions capable of supporting large-scale production and/or utilization of H3 as GH hubs. In addition, the development of necessary and appurtenant infrastructure in connection with such hubs will be supported under the mission.

Necessary Frameworks

In light of the above, an enabling policy framework will be developed by the government for the purpose of establishing a viable GH ecosystem. Further, a robust framework of standards and regulations is also expected to be formulated soon. In addition, a framework of public-private partnerships ("PPP") for R&D will be facilitated under NGHM under the so-called Strategic Hydrogen Innovation Partnership ("SHIP").

R&D projects related to NGHM are expected to be scaled up appropriately on an ongoing basis for the purpose of developing globally competitive technologies. Relatedly, a coordinated skill development program will be undertaken under the auspices of the NGHM.

Given India's present focus on GH, all concerned ministries, departments, agencies, and public institutions connected with its central and state governments have been instructed to undertake concrete measures in coordination with each other in order to ensure better compliance with the NGHM's objectives.

Review of the competitive bidding mechanism for procurement of power from wind power projects

A notification dated January 9, 2023 was issued by the wind energy division of the MNRE pursuant to its review of the competitive bidding mechanism for procurement of power from wind power projects (the "Wind Notification").12

Previously, the MNRE had constituted a committee to examine proposals for ensuring faster capacity addition in the wind sector. This committee had submitted its report and the recommendations were examined by the MNRE. Pursuant to its consideration of such report, the MNRE has decided as follows:

Bids for a cumulative capacity of about 8 GW would be issued each year from January 1, 2023 until 2030. In order to ensure that wind energy capacity increases in all 8 'windy' Indian states, every bid will be required to be a composite bid – i.e., comprising state-specific sub-bids for each of such windy states. The power generated from the capacity established in each of the state sub-bids would be required to be in accordance with the Electricity (Amendment) Rules, as notified.

The bid process, bid mechanism, technical pre-qualification process, preparatory phase, methodology for tariff pooling across all state bids, were annexed to the Wind Notification. Necessary amendment(s) to the 'Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind Power Projects' (the "Wind Bidding Guidelines") will be separately notified for the purpose of the Wind Notification.

Draft Electricity (Amendment) Rules

Pursuant to a notification dated January 19, 2023 issued by the Ministry of Power,13 the draft Electricity (Amendment) Rules, 2023 were forwarded to select stakeholders for comments. Among other proposed changes to the Electricity Rules, 2005, the draft amendment prescribes and/or clarifies rules related to licensees.

Background

Previously, pursuant to a gazette notification dated December 29, 2022, the central government had notified the Electricity (Amendment) Rules, 2022 – making significant amendments to the Electricity Rules, 2005,14 including with respect to various provisions related to renewable energy in general, and specifically in connection with dispute resolution, the surcharge payable by consumers seeking open access, timely recovery of power purchase costs by distribution licensees, subsidy accounting, resource adequacy, development of hydropower, energy storage systems, and the implementation of uniform RE tariffs for a central pool. RE implementing agencies are required to compute such uniform tariffs pursuant to a specified methodology. Further, a separate methodology has been provided with respect to computations of necessary adjustments related to fuel and power purchase surcharges.

RBI's auction of Sovereign Green Bonds

Pursuant to a press release dated January 6, 2023 issued by the the Reserve Bank of India ("RBI," and such press release, the "January 6 Press Release"),15 it was announced that as part of its overall market borrowings, the Government of India would be issuing 'Sovereign Green Bonds' ("SGrBs") for mobilizing resources for green infrastructure. Further, the January 6 Press Release specified that the proceeds from such bond issuance would be deployed in public sector projects that might help in reducing the carbon intensity of the Indian economy. Accordingly, in consultation with the Government of India, and through such press release, the RBI notified the indicative calendar for issuance of the SGrBs for the fiscal year 2022-23. In that respect, the January 6 Press Release provided the issuance calendar for such bonds comprising two auction dates – January 25 and February 9, 2023, respectively. Further, certain salient features of the SGrB issuance were provided, including in respect of issuance method;16 reservation for retail investors under a non-competitive bidding facility;17 underwriting;18 investment by non-residents;19 along with eligibility for: (i) repurchase transactions ("Repo"), (ii) statutory liquidity ratio ("SLR"),20 (iii) 'when-issued' trading, (iv) trading in the secondary market,21 and (v) transferability.22 In particular, it was clarified that the SGrBs would be designated as specified securities under the so-called 'Fully Accessible Route' ("FAR") for investment in government securities by non-residents.

Further, pursuant to a subsequent press release dated January 19, 2023 issued by the RBI (the "January 19 Press Release"),23 it was stated that the Government of India had announced the sale (issue) of two SGrBs for a notified amount further to details specified.24 The SGrBs would be issued to eligible investors through a 'uniform price' auction.25 Operational guidelines for the auction and other related details were provided in the annex to the January 19 Press Release.

On January 25, 2023, the RBI announced the results of underwriting auctions conducted that day with regard to additional competitive underwriting ("ACU") in respect of the SGrBs (the "January 25 Press Release").26

Background

Last year, in India's Union Budget for the financial year 2022-23, the country's finance minister had announced27 that the RBI would issue SGrBs for the purpose of mobilizing resources for green infrastructure, and the proceeds from such bond issuance would be deployed in public sector projects to reduce the carbon intensity of the economy. Accordingly, the framework (the "SGrB Framework")28 and indicative issuance calendar29 with regard to the SGrBs were released on November 9, 2022 and January 6, 2023, respectively.

India's debut sovereign issuance in green bonds involved INR 160 billion (USD 1.9 billion), offered in two tranches of INR 80 billion each – in five and ten-year tenors – through auctions scheduled for January 25 and February 9, 2023, respectively. The issuance was categorized under the FAR for the benefit of foreign investors.

The FAR was introduced with effect from April 1, 2020 as a separate channel for non-resident investment in 'dated' securities issued by the Indian government (i.e., carrying a fixed or floating interest rate, paid on the face value on a half-yearly basis, with a tenor of at least 5 years) – where eligible investors can participate without any investment ceilings. Accordingly, certain specified categories of government securities can be made fully accessible for non-resident investors, i.e., without any restrictions, apart from being available to domestic investors as well. Such specified securities, once so designated, remain eligible for investment under the FAR until maturity.

The sale of the SGrBs commenced on January 25, 2023, and the first tranche was fully subscribed.

Draft guidelines to promote the development of PSP

Pursuant to a notification dated January 15, 2023 issued by the Ministry of Power ("MoP") (in consultation with the MNRE),30 draft guidelines to promote the development of pump storage projects ("PSP") were released seeking comments from both public and private stakeholders.

Background

India's proposed energy transition involves an increasing presence of renewable energy sources in the country's energy mix (such as solar and wind energy), which, in turn, tend to be variable and intermittent. On account of such inherent variability, various challenges arise at the grid level. Addressing such challenges requires the incentivization of technologies with attributes that offer storage and ancillary services.

In this regard, PSP is a large-scale, domestically available, time-tested, and globally acceptable technology which can suitably address the country's requirements with respect to storage and ancillary services. Further, PSP is a clean and safe technology which neither produces toxic or harmful by-products, nor poses problems of disposal.

Accordingly, in light of the significant advantages offered by PSP – including with respect to grid stabilization and meeting peak power demands – there appeared to exist sufficient reasons to formulate a separate set of guidelines to promote PSP, especially to direct developmental initiatives in this regard. It is in this context that the draft guidelines on PSP were issued.

Amended green energy open access rules

Pursuant to a gazette notification dated January 27, 2023, the MoP notified the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Amendment Rules, 2023 (the "OA Amendment").31 The OA Amendment amends the Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 (the "Open Access Rules").32

The MoP had notified the Open Access Rules in June 2022 with the aim to promote the generation, purchase, and consumption of green energy, including energy from waste-to-energy plants.33 In general, the Open Access Rules seek to increase both the ease and scale of consumer access to green energy. The OA Amendment introduces changes related to consumers, banked energy, and leviable charges – including in respect of surcharge and standby charges.

FEBRUARY 2023

Renewable and Green Energy identified as one of the seven key priorities in the Union Budget34

The Union Budget of India (the "Budget") for financial year 2023-24, as presented by the Indian finance minister on February 1, 2023,35 identified renewable energy as one of the seven pillars of the Budget. In an initiative to strengthen India's green energy initiatives and a 'net-zero' future, the Budget proposed the following:

  • A 'priority' capital investment of INR 350 billion (approx. USD 4.3 billion) for a transition to green energy, zero emissions, and energy security, including through targeted hydrogen production, has been proposed;
  • For the purpose of boosting e-mobility, reducing input costs, deepening value addition, promoting export competitiveness, and correcting inverted duty structures to boost domestic manufacturing, basic customs duty ("BCD")36 exemptions have been proposed until March 31, 2024 on, inter alia, specified capital goods/machinery for the manufacture of lithium-ion cells for use in e-vehicle ("EV") batteries;
  • Further, certain conditional exemption rates in respect of BCD have been reviewed and extended for another year (up to March 31, 2024) for certain items, including the following:
    • catalysts for the manufacture of cast components of wind-operated electricity generator
    • resin for the manufacture of cast components of wind-operated electricity generators;
    • toughened glass for solar thermal collectors or heaters;
    • forged steel rings for the manufacture of special bearings for use in wind-operated electricity generators;
    • flat copper wires for use in the manufacture of photovoltaic ribbons for solar cells and modules;
    • batteries for EV, including two and three-wheeler EVs; and
    • active energy controllers ("AEC") for use in the manufacture of renewable power system ("RPS") inverters;37
  • In addition, in terms of changing the end-date of exemptions without a change in effective rate of duty, certain items have been specified, including the following:
    • lithium-ion cell for use in the manufacture of battery or battery pack of EVs or hybrid motor vehicles (5%, up to March 31, 2024);
    • specified inputs for use in the manufacture of ethylene vinyl acetate ("EVA") sheets or back sheets used in the manufacture of solar cells or modules (nil, up to March 31, 2024);
    • solar tempered glass for use in the manufacture of solar cells or solar modules (nil, up to March 31, 2024);
    • raw materials and component parts for the manufacture of wind-operated electricity generators, including permanent magnets ("PM") for the manufacture of PM synchronous generators above 500 kilowatts ("KW") for use in wind-operated electricity operators (5%, up to March 31, 2025).
  • Furthermore, certain changes in BCD (without any change in the effective rate of customs duties) have been proposed. Accordingly, while the BCD on coal has been increased to 2.5% from 1%, it remains exempt from the Agriculture Infrastructure and Development Cess ("AIDC").38
  • For the purpose of spurring domestic production, increased customs duties on imports of semi-knocked down and built EV units have been proposed;
  • Further, coastal shipping will be promoted as an energy-efficient and low-cost mode of transport, both for passengers and freight, through public-private partnership ("PPP") models with viability gap funding.
  • Replacing old polluting vehicles remains an important priority. Accordingly, pursuant to the vehicle scrapping policy mentioned in the Budget of 2021-22, adequate funds have been allocated to scrap old vehicles of the central government. States will also be supported in their efforts to replace old vehicles and ambulances;
  • To avoid the cascading of taxes on blended compressed natural gas, exemptions have been proposed for central excise duty on GST-paid compressed biogas contained in such natural gas;
  • Battery energy storage projects with a capacity of 4,000 megawatt-hours ("MWh") will be supported with viability gap funding. A detailed framework for pumped storage projects will also be formulated;
  • The inter-state transmission system for evacuation and grid integration with respect to 13 GW of renewable energy from Ladakh will be constructed with an investment of INR 207 billion, including central support of INR 83 billion;
  • A 'Green Credit Program' under the Environment (Protection) Act, 1986, as amended, has been proposed to promote sustainable initiatives by companies, individuals, and local bodies for additional resources;
  • Further, the targets (5 MMT)39 and financial outlay (about INR 200 billion)40 in connection with the NGHM were reiterated;
  • The "PM Programme for Restoration, Awareness, Nourishment and Amelioration of Mother Earth" ("PM-PRANAM") will be launched to incentivize states and union territories to promote the use of alternative fertilizers, as well as the balanced use of chemical fertilizers;
  • 500 new 'waste to wealth' plants under the 'Galvanizing Organic Bio-Agro Resources Dhan ("GOBARdhan") scheme will be established to promote a circular economy. Such new 'waste to wealth' plants will involve 200 compressed biogas ("CBG") plants, including 75 plants in urban areas, and 300 community or cluster-based plants. The total proposed investment in this regard is INR 100 billion. In due course, a 5% CBG mandate will be introduced for all organizations that market natural and biogas. Further, appropriate fiscal support will be provided for the collection of biomass, as well as for the distribution of bio-manure.
  • States will be encouraged to undertake urban planning reforms to transform existing cities into futuristic and sustainable ones, including through the involvement of efficient use of land resources, adequate resource allocation for urban infrastructure, transit-oriented development, as well as enhanced availability and affordability of urban land.
  • Further, through property tax governance reforms and ring-fencing user charges on urban infrastructure, cities will be incentivized to improve their creditworthiness for the purpose of issuing municipal bonds.

Further, the government has almost doubled its budgetary allocation for the second phase of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India scheme ("FAME II") to subsidize the purchase of EVs.41 In addition, a number of details related to financial outlays, budgetary allocations, as well as outputs and outcomes related to government schemes have been updated in the outcome budget.42

CERC issued new guidelines to supplement the DSM Regulations 2022

Pursuant to an order dated February 6, 2023 (the "Order"),43 the Central Electricity Regulatory Commission ("CERC") issued new directions ("Directions") with respect to grid security for the purpose of supplementing the Central Electricity Regulatory Commission (Deviation Settlement Mechanism and Related Matters) Regulations, 2022 ("DSM Regulations").44 Through such Directions, the CERC:

  • Specified new norms and a ceiling rate for the normal rate of charges for deviations with respect to a time block;
  • Clarified the applicable payment by way of over-injection and under-injection for deviation with respect to frequencies under 49.95 Hz, and over 50.03 Hz, respectively.

The Directions came into effect from February 8, 2023. The Order states that it is proposed to be an interim measure in the interest of grid security, and the CERC will amend the DSM Regulations separately, as deemed appropriate pursuant to further analysis.

Background

While market participants adjusted to the DSM Regulations, in light of continued and significant fluctuations in grid frequency, the CERC found it necessary to intervene in the interest of grid security. Accordingly, based on its own monitoring of the situation, and pursuant to feedback from, and consultations with, various stakeholders, the CERC decided to temporarily relax Regulations 7 (dealing with the normal rate of charges for deviations) and 8 (dealing with charges for deviation) of the DSM Regulations.

IREDA has proposed to establish an office in Gujarat's GIFT City to finance Renewable Energy projects in foreign currency

In a press release dated February 24, 2023,45 it was announced that the Indian Renewable Energy Development Agency Limited ("IREDA"), a Government of India enterprise, plans to establish an office in India's first international financial services center ("IFSC") under the auspices of the Gujarat International Finance Tec-city ("GIFT City"), located between Ahmedabad and Gandhinagar, to finance renewable energy projects in foreign currency. IREDA's office at GIFT City will be classified as an overseas office to avoid foreign exchange hedging costs. In the press release it was highlighted, among other things, that:

  • Having a green taxonomy will be important for the purpose of raising funds. Currently, the aim is to raise approximately INR 25 lakh crores for green energy projects by 2030;
  • Insurance and superannuation funds were proposed to invest 2% of their assets under management in green bonds to finance green energy projects; and
  • Major multilateral and bilateral agencies such as the World Bank and the Asian Development Bank ("ADB") preferred to channel their funds through IREDA for renewable energy ("RE") projects in India, making IREDA an important vehicle for RE funding in the country.

Approval for pre-investment activities with respect to India's largest hydropower project near the China border

The Cabinet Committee on Economic Affairs approved an investment of INR 1,600 crores for pre-investment activities for a 2,880 MW hydropower/multipurpose project in Dibang, Arunachal Pradesh – the country's largest hydropower project until date (the "Project"), to be developed by NHPC Limited, a Government of India enterprise ("NHPC"). Overall, the Government of India has allocated INR 319 billion (USD 3.9 billion) for the Project, which is estimated to take nine years to build. Back in March 2019, India's Union Cabinet had decided to classify large hydropower projects as renewable energy.46 As such, the government views hydropower as pivotal with regard to the country's proposed transition away from coal to help manage the inherent power fluctuations caused by variability in the supply of solar and wind energy. The approved investment for the Project includes an amount of INR 67.2 billion towards government support for flood moderation and enabling infrastructure, such as roads and bridges connecting the construction site.

According to the NHPC website, the Project is under construction. Further, the location of the project has strategic importance, given its proximity to India's border with China.

PM Gati Shakti National Master Plan related to Renewable Energy

Pursuant to an order dated February 15, 2023 issued by the 'Gati Shakti' cell of the MNRE,47 it was announced that renewable energy ("RE") projects with a capacity of 50 MW or higher are required be to be mapped on the portal associated with the 'Prime Minister's Gati Shakti National Master Plan' for multi-modal48 connectivity ("NMP").49 Accordingly, RE projects undertaken by implementation agencies, including in respect of solar and wind energy, will be mapped on the NMP by the Gati Shakti cell. In addition, RE projects undertaken further to state schemes and tenders will be mapped by such states themselves on their respective official portals with links to the NMP.

In this regard, the Gati Shakti will upload resource maps related to solar radiation and wind speed on the NMP. Meanwhile, state transmission utilities will map intra-state transmission infrastructure on state portals in coordination with the Power Ministry.

Background

The portal associated with NMP aims to showcase key details of high-impact power transmission projects, especially those which are located in states with abundant RE resources. Accordingly, the NMP portal seeks to provide a 'one-click' comprehensive overview in this regard to simplify the planning and implementation process related to power transmission projects, including by improving logistical efficiency through a single digital platform.50

Tamil Nadu announced its new EV policy51

The state government of Tamil Nadu unveiled its new policy on electric vehicles ("EVs") in February 2023 ("TNEVP 2023"). With a focus on promoting investment in the EV sector and creating a more conducive ecosystem for the industry, TNEVP 2023 seeks to promote research and development with respect to EVs, ensure the creation of a pool of skilled workers, generate new jobs, and make Tamil Nadu a destination of choice for EVs and component manufacturers. With a four-pronged approach in respect of this objective, the TNEVP 2023 involves thrust areas across the supply side, demand side, charging infrastructure,52 and ecosystem development. The state government has also encouraged a circular economy with respect to EV batteries by promoting the re-use and recycling of such batteries through recycling stations, as set up by EV manufactures.

Other states also launched EV initiatives

Punjab

Pursuant to a notification dated February 21, 2023,53 the transport department of the Punjab state government announced the initiation of its 2022 EV policy for a period of 3 years, pursuant to the approval of such policy by the state's council of ministers on February 3, 2023.

Himachal Pradesh

Last year, the state government of Himachal Pradesh had formulated an EV policy.54 According to media reports, in February 2023, the state's transport department announced that it would convert its entire fleet of petrol- and diesel-powered official vehicles to EVs.55

BRSR Core: Consultation Paper on ESG disclosures, ratings, and investing

On February 20, 2023, the Securities and Exchange Board of India ("SEBI") released a consultation paper on disclosures, ratings, and investing related to Environmental, Social, and Governance ("ESG") parameters for the purpose of seeking comments from the public ("Consultation Paper 1").56 According to Consultation Paper 1, among other things, SEBI soon plans to introduce an assurance-based reporting regime based on key ESG attributes – referred to, and appended in Annexure 1 to Consultation Paper 1, as "BRSR Core". The BRSR Core format comprises select essential indicators across various principles which may become the foundation of the proposed assurance process.

By design, BRSR Core has been formulated on the basis of quantifiability and 'reasonable assurance' mandate (similar to an audit verification) with respect to ESG data across key performance indicators ("KPIs"). The thrust on quantifiable (i.e., measurable) and outcome-oriented ESG metrics, as well as SEBI's focus on coherent methodologies related to data verification by assurance providers on the basis of a 'reasonable' standard (as opposed to 'limited' assurance, which is easier to implement, and consequently yields lower confidence levels), appear to be a deliberate feature of BRSR Core – including for the purpose of facilitating better comparisons and greater market reliance, respectively, as well as to reduce compliance costs.

BRSR Core, as it currently stands, may apply in a staggered trajectory (termed the 'glide path approach'): for instance, subject to future changes stemming from stakeholder consultation, the mandatory applicability of reasonable assurance in respect of its KPIs may extend to the top 250 listed companies in India (by market capitalization) from FY 2023-24, and subsequently, to the top 500 and 1,000 such companies by FY 2024-2025 and 2025-2026, respectively.

KPIs in the BRSR Core include internationally comparable parameters such as intensity ratios (e.g., related to waste generation or greenhouse gases ("GHG")) based on revenue and volume. Some such disclosures are already required under the general BRSR framework. Now, SEBI has proposed that certain requirements (such as intensity ratios) should be adjusted for purchasing power parity ("PPP") in the energy markets, since such ratios are used by global investors and global ESG ratings providers.57 Accordingly, in the first phase, intensity ratios may be rationalized according to country-level PPP, subject to finalization.

Further, Consultation Paper 1 contemplates the enhancement of BRSR Core disclosures in relation to corporate supply chains. Given the convoluted supply chain structure in India, comprising mostly small and medium enterprises, SEBI has proposed that ESG disclosures be introduced for supply chains in a phased manner. Thus, in the first phase (FY 2024-25), the top 250 listed companies (by market capitalization) may be required to provide ESG disclosures on a "comply or explain" basis, where assurance will not be mandatory. However, from FY 2025-26, such companies may be under an obligation to provide assurances in this regard. SEBI's proposal includes 15 parameters that "have an Indian context," which ESG rating providers need to factor in while assigning corresponding ratings to Indian companies. SEBI has indicated that, once finalized, KPIs in BRSR Core, to the extent that those are not incorporated already in the general BRSR framework, will be included in an updated version of the latter.

Background

As the name suggests, BRSR Core is intended to be a focused subset of the wider Business Responsibility and Sustainability Reporting ("BRSR") framework, which, in turn, SEBI had introduced almost two years ago (in May 2021)58 as an ESG-based voluntary disclosure regime in lieu of the erstwhile Business Responsibility Reporting ("BRR") paradigm.59 The main motivation behind introducing the BRSR framework was to ensure quantitative, standardized disclosures on ESG-linked parameters from large, listed companies.

Until now, i.e., until the financial year ("FY") 2021-22, the top 1,000 listed companies in India by market capitalization (the "BRSR Companies") could make ESG disclosures pursuant to the BRSR framework on a voluntary basis. However, such disclosures are now compulsory for the same BRSR Companies, i.e., from FY 2022-23. Accordingly, the mandated entities need to file their BRSR reports electronically, and in addition, such entities are required to integrate these reports with other corporate filings, as made on the 'MCA21' portal, i.e., the website maintained by the Indian Ministry of Corporate Affairs ("MCA").

Consultation Paper on Regulatory Framework for ESG Rating Providers

On February 22, 2023, SEBI released a separate consultation paper on the regulatory framework for ESG rating providers ("ERPs") in the securities market ("Consultation Paper 2").60

Among other things in Consultation Paper 2, it was proposed that ERPs may register with SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999 (the "CRA Regulations"). Accordingly, SEBI suggested that the CRA Regulations will be amended to include a chapter for ERPs. Nevertheless, public comments were sought in respect of the proposed regulatory framework for ERPs, which has been detailed in Annexure I of the paper. In essence, SEBI has proposed an amendment in the CRA Regulations, a draft of which was annexed to Consultation Paper 2.

While regulators in certain jurisdictions have opted for a voluntary code of conduct for ERPs, SEBI has proposed an enforceable regulatory and supervisory framework for ERPs in light of its own experience with credit rating agencies. SEBI regulations with respect to credit rating agencies came into effect in 1999.

In context of the proposed BRSR Core framework, it was proposed that ERPs may provide a 'Core ESG Rating' based on assured indicators. It was further proposed that while Core ESG ratings must necessarily be based on assured and/or verified data, ERPs may be permitted to provide additional commentary on data that may not be assured/verified.

Background

On January 24, 2022, SEBI had published a consultation paper on ERPs for the securities market ("Previous Paper").61 The Previous Paper had contained proposals on the regulation and/or accreditation of ERPs. Accordingly, it had sought public comments on various issues, including in respect of the scope of regulations, eligibility of entities to act as ERPs, conditions for accreditation, ESG rating products, standardization of ESG rating scales, transparency, governance, and business models of ERPs.

Based on responses received from, and discussions held with, various stakeholders with respect to the Previous Paper, as well as in light of global regulatory developments, SEBI proposed to introduce a regulatory framework for ERPs. In May 2022, SEBI constituted an advisory committee on ESG matters in the securities market (the "Advisory Committee"),62 the auspices under which ESG disclosures, investing, and ratings were deliberated upon. Pursuant to the recommendations of the Advisory Committee along with its internal deliberations, SEBI's proposed approach with respect to ESG ratings and ERPs was detailed in Consultation Paper 2.

Quality Control Manual for Grid-Connected Rooftop Solar PV Systems and Solar PV Water Pumping Systems

Pursuant to an office memorandum dated February 25, 202363 issued by a division within the MNRE that deals with grid-connected solar photovoltaic ("PV") systems (the "Quality Control Memo"), a draft manual was released for stakeholder comments.

Background

The MNRE supports initiatives related to the installation of grid-connected rooftop solar systems, as well as installations of standalone solar pumps – including with respect to the solarization of existing grid-connected agriculture pumps under the MNRE's schemes and programs. Accordingly, for the purpose of ensuring the quality of such installations, as well as establishing a structured mechanism for the monitoring of such installations, the MNRE proposes to bring out quality-control manuals for the following:

  • Grid-connected rooftop solar PV systems (the draft quality control manual in this regard was included within the Quality Control Memo as Annexure A);
  • Standalone solar PV water pumping systems and solarization of existing individual agricultural pumps (the draft quality control manual in this regard was included within the Quality Control Memo as Annexure B).

MARCH 2023

ICRA upgraded IREDA's rating to 'AAA' from 'AA+'

Pursuant to a press release dated March 7, 2023,64 the Indian Renewable Energy Development Agency Limited ("IREDA") announced that ICRA Limited, the credit rating agency ("ICRA"), had upgraded the rating associated with the long‐term bonds program of IREDA to 'AAA' (Outlook: Stable) from 'AA+' (Outlook: Positive).

MNRE keeps ALMM in abeyance till FY24 – commissioned projects to be exempted from procuring requirements65

Pursuant to a circular dated March 10, 2023,66 the grid solar power division of the MNRE clarified that the Approved Models and Manufacturers of Solar Photovoltaic Modules (Requirements for Compulsory Registration) Order, 2019, as amended and modified (the "ALMM Order"), would be held in abeyance for one financial year, i.e., until the end of FY 2023-24. It was further clarified that projects commissioned until March 31, 2024 would be exempted from the requirement of procuring solar photovoltaic modules (pursuant to the ALMM Order) from the approved list of models and manufacturers ("ALMM").

Further, pursuant to an office memorandum dated March 22, 202367 issued by the grid solar power division of the MNRE with respect to guidelines for enlistment under the ALMM Order, certain erstwhile provisions were modified and/or recast.

MNRE signed agreements with Australia, Finland, Germany, and UAE for promotion of bilateral cooperation in renewable energy68

According to a press release dated March 14, 2023,69 the MNRE has entered into the following agreements since 2022:

  • A Letter of Intent ("LoI") on 'New and Renewable Energy Technology cooperation' was signed with Australia on February 15, 2022.
  • A Memorandum of Understanding ("MoU") with respect to cooperation in the field of renewable energy was signed with the Republic of Finland on April 19, 2022.
  • A Joint Declaration of Intent ("JDI") on the Indo-German Green Hydrogen Task force was signed with the Germany on May 2, 2022.
  • A JDI with respect to a 'Renewable Energy Partnership' was signed with Germany on May 2, 2022.
  • An MoU to promote discussion and cooperation between the parties in potential areas of cooperation within the spectrum of GH development and investments in India and the United Arab Emirates ("UAE") was signed on January 13, 2023.

Power Ministry notified a 40% Renewable Generation Obligation

Through a gazette notification dated March 2, 2023,70 a resolution dated February 27, 2023 adopted by the Ministry of Power ("MoP") related to a renewable generation obligation ("RGO") pursuant to the revised Tariff Policy of 2016, was notified. According to the RGO mandate, it was decided that any generating company establishing a coal/lignite-based thermal generating station with a project commercial operation date ("COD") on or after April 1, 2023 will be required to establish a renewable energy ("RE") generating capacity (in MW), i.e., have an RGO, of a minimum of 40% of the capacity of such coal/lignite-based thermal generating station, or procure and supply RE equivalent to such capacity.

On the other hand, a coal/lignite-based thermal generating station with a project COD between April 1, 2023 and March 31, 2025 will be required to comply with the RGO of 40% by April 1, 2025, and any other coal/lignite-based thermal generating station with a project COD after April 1, 2025 will be required to comply with such RGO of 40% by the COD.

Further, a captive coal/lignite-based thermal generating station will be exempt from RGO requirements subject to fulfilment of its renewable purchase obligations ("RPO") as notified by the central government.

In other words, upcoming thermal power plants will have to produce a minimum of 40% of the total power generated at their plant through renewable sources – either on their own or by procuring energy from other sources. Meanwhile, power plants which begin commercial operations from April 1, 2023, to March 31, 2025, will have to ensure compliance with the new RGO norms by the end of April 1, 2025. New thermal power plants coming into operation after April 1, 2025 will have to comply with the RGO requirement as they begin operations. Captive thermal power plants, however, have been kept outside the purview of the RGO framework.

Seabed leasing for offshore wind projects

According to media reports from March 2023,71 India's first tender for seabed leasing with respect to offshore wind projects may be out soon.72 Such reports appear to have been confirmed by representatives from the National Institute of Wind Energy ("NIWE") – the government body that will issue the tender.

Background

In November 2022, the MNRE and NIWE had issued a draft tender document73 along with corresponding contractual documents to certain wind power developers in connection with the proposed leasing of seabed areas for the purpose of carrying out studies, surveys, and the subsequent development of offshore wind projects under open access/captive/third party sale. To facilitate appropriate stakeholder consultations, comments to the draft tender document had been sought through the issuance of a circular dated November 14, 2022 which contained a 'request for selection ("RfS") document for the eventual selection of offshore wind power developers in respect of projects off the coast of Tamil Nadu. Developers would be expected to assume responsibility for the development and installation of grid connections for such windfarms. Energy generated from the proposed offshore wind projects are intended to be consumed in a captive mode or sold to third parties under the open access framework, or even sold through merchant sales or via power exchanges.

Draft carbon credit trading scheme released

On March 27, 2023, the MoP issued a letter along with a draft carbon credit trading scheme (the "Draft Scheme")74 as part of its process to establish a carbon credit market in India. Pursuant to such release, the MoP has sought views from stakeholders on the proposals contained in the Draft Scheme by April 14, 2023. The Energy Conservation (Amendment) Act, 2022 (the "EC Amendment")75 passed by Parliament last year in December, had included provisions about a market for carbon credits.

The EC Amendment amended the Energy Conservation Act, 2001.76 Specifically, one key provision of the EC Amendment empowered the central government to specify a carbon trading scheme in consultation with Bureau of Energy Efficiency ("BEE").

Accordingly, a key element of the Draft Scheme is the structure of the proposed Indian carbon market for both voluntary trading and compliance. As per the Draft Scheme, a governing board, comprising secretaries and joint secretaries of the environment, power, renewable energy, steel, coal, and oil ministries, among others, would be formed to administer the Indian carbon market. The proposed board would also recommend procedures and rules for the market. Further, such board would frame the methodologies for voluntary carbon credit trading and guidelines regarding the sale of carbon credit certificates to overseas buyers.

Background

The EC Amendment had clarified that a carbon credit trading scheme would involve a scheme for reduction of carbon emissions as notified by the central government. Entities, including designated consumers, could be registered for such scheme. The central government, or any agency authorized by it, may issue carbon credit certificates to registered entities that comply with the requirements

of the carbon credit trading scheme. In turn, registered entities will be entitled to purchase or sell carbon credit certificates in accordance with the scheme.

Accordingly, the Draft Scheme adheres to such broad stipulations. In addition, the BEE will specify a procedure, including in terms of eligibility criteria, for agency accreditations in respect of functioning as 'accredited carbon verifiers' with the approval of a proposed governing board related to the Indian carbon market ("ICMGB"). ICMGB and other specified authorities will later develop a detailed procedure for operationalizing the Indian carbon market along with its various underlying mechanisms.

The Draft Scheme proposes a compliance mechanism pursuant to which obligated entities will be required to comply with prescribed greenhouse gas ("GHG") emission norms, as notified by the central government with respect to carbon credit trading. Such obligated entities will include those registered entities which are notified under the proposed compliance mechanism.

Bidding trajectory for renewable energy projects

Pursuant to an office memorandum dated March 31, 2023 issued by the grid solar power division of the MNRE,77 a bidding trajectory was prescribed for renewable energy ("RE") in respect of power bids to be issued by RE implementation agencies – given India's climate-related targets by 2030, as well as in light of the time required for commissioning RE power projects.

Accordingly, it was stated in the memorandum that bids for RE capacity of 50 GW per year, with at least 10 GW of wind energy per year, will be issued annually from FY 2023-24 until FY 2027-28. A quarterly timeline for FY 2023-24 was also prescribed, and such RE projects may comprise vanilla solar and wind, solar-wind hybrid, round-the-clock RE, with or without storage, or any other combination – pursuant to market conditions and governmental directions.

Going forward, annual targeted bid capacities will be allocated among RE implementation agencies by the government. Bids are required to be floated pursuant to government-issued standard bidding guidelines, along with the MNRE's advice related to tenders for RE projects.

Footnotes

1. See here.

2. See here.

3. See here and here.

4. See here.

5. GA will be made by combining nitrogen with hydrogen using renewable energy sources. GA can be used by the fertilizer industry or as a fuel or as a means of transporting hydrogen.

6. Available here.

7. The Electricity (Promoting Renewable Energy Through Green Energy Open Access) Rules, 2022 (the "Open Access Rules"), notified on June 6, 2022

8. See Press Release "Ministry of Power notifies 'Green Energy Open Access' Rules to accelerate ambitious renewable energy programmes," PIB, New Delhi, July 19, 2022; available at: https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1842737#:~:text=The%20Green%20Open%20Access%20is,of%20Green%20Power%20from%20Discoms

9. While a system of multiple suppliers is not new, such suppliers were previously not required to allow new participants to openly access their network. However, new distribution licensees will now be permitted to use the existing network (upon payment of applicable charges). In other words, while the extant (Indian) Electricity Act, 2003, as amended, already allows multiple discoms to operate in the same supply area, it still requires them to distribute electricity through their own network. Now, a new Electricity Bill (see below) does away with such requirement. Instead, a discom will now need to extend access to all other discoms operating in the same area to its own network. Thus, the existing monopoly that discoms hitherto enjoyed in respect of both area and supply appears to be drawing to a close.

10. See "Discussion Paper on Market Based Economic Dispatch of Electricity: Re-designing of Day-ahead Market (DAM) in India," CERC, December 2018 (the "MBED Discussion Paper"); available at: https://cercind.gov.in/2018/draft_reg/DP31.pdf

11. Available here.

12. Available here.

13. Available here.

14. See here.

15. See here.

16. It was clarified that the SGrBs would be issued to eligible investors through a 'uniform price' auction. Under this method, competitive bids offered with rates up to and including the maximum rate of yield, or the prices up to and including the minimum offer price, as determined by the RBI, would be accepted at the maximum rate of yield or at the minimum offer price so determined. Bids which are quoted higher than the maximum rate of yield or lower than the minimum price (as determined by the RBI in consultation with the Indian government) would be rejected.

17. Under Indian law, for the purpose of encouraging wider participation, a non-competitive bidding facility has been made available for retail investors in select auctions of government securities. See here. Accordingly, 5% of the aggregate nominal amount of the SGrB issuance would be reserved for retail investors – which category may include any individual, firm, company, corporate body, institution, provident fund, trust, or any other person/entity prescribed by the RBI. Nevertheless, to qualify as an eligible participant in the auctions on a non-competitive basis, a retail investor would need to satisfy certain stipulated requirements. See here.

18. Primary dealers ("PDs") – including scheduled commercial banks that undertake PD business departmentally – could engage in underwriting with regard to the SGrB auction. Further, the RBI stipulated (i) a minimum underwriting commitment ("MUC") for each PD, and (ii) the amount for which an additional competitive underwriting ("ACU") auction would be held.

19. Investments in the SGrBs could be made by: (i) any person resident in India – including firms, companies, corporate bodies, institutions, state governments, provident funds and trusts, non-resident Indians ("NRIs"), overseas citizens of India ("OCIs"), foreign portfolio investors ("FPIs") registered with the Securities and Exchange Board of India ("SEBI") and approved by the RBI; as well as (ii) any other person not resident in India, as specified by the RBI with the prior approval of the Indian government in this regard. Foreign Central Banks ("FCBs") were also be eligible to invest in the SGrBs subject to certain terms and conditions, as stipulated by the RBI in consultation with the Indian government. Nevertheless, an investment made by a person resident outside India or by a company which is incorporated outside India (or by a branch of such a company) would remain subject to the provisions of the Foreign Exchange Management Act, 1999, as amended from time to time ("FEMA"), along with applicable regulations framed under FEMA – in addition to other provisions of law which are generally applicable to Indian government securities.

20. The SGrBs would be considered as eligible investments for the purpose of Statutory Liquidity Ratio ("SLR") obligations and repurchase transactions ("Repo") in banks. All regulated entities, listed corporates, unlisted companies which have been issued special securities by the Indian government using only such special securities as collateral, all-India financial institutions ("FIs") constituted through parliamentary legislation (such as Exim Bank, the National Bank for Agriculture and Rural Development ("NABARD"), National Housing Bank ("NHB"), and the Small Industries Development Bank of India ("SIDBI")), as well as any other entity approved by the RBI, were eligible to participate in Repo transactions involving the SGrBs. While such Repo transactions were required to be undertaken for at least a day's period and at most a year's (see here), they would be tradeable on any recognized stock exchange or RBI-authorized electronic trading platform – or even in the over-the-counter ("OTC") market – albeit with prior RBI approval in each case. Further, such transactions could employ any trading process, as long as such process was mutually agreed upon.

21. While the SGrBs would be eligible for trading in the secondary market – since July 2018, the eligible participant base and entity-wise limits in respect of transactions in the 'when, as and if issued' ("When Issued," or "WI") market in government securities have been liberalized and relaxed, respectively. Of particular interest was the fact that the SGrBs would be eligible for WI trading. A WI security is one which has been authorized for issuance but has not yet been issued. Thus, WI trading occurs between: (i) the time a government security is announced for issuance, and (ii) the time such security is finally issued. Predictably, all WI transactions are on an 'if' basis, i.e., they are settled if and when the security is subsequently issued. Generally speaking, all entities which are eligible to participate in the primary auction of central government securities may undertake both net long and short positions in the WI market. This applies for new securities as well as for reissuances. Although such eligibility conditions would extend to the SGrB issuance as well, resident individuals, Hindu Undivided Families ("HUFs"), NRIs, and OCIs would be permitted to take only long positions. Further, entities other than scheduled commercial banks and PDs would be required to close their short positions, as applicable, by the close of trading on the date of auction. All WI transactions for all trade dates were required to be contracted for settlement on the date of issue. Finally, if the auction was cancelled for any reason, all WI trades would be deemed null and void.

22. The SGrBs could be renewed, sub-divided, consolidated, converted, and transferred in accordance with, and subject to the restrictions stipulated under, applicable law. See here. Transfers by NRIs, FPIs and FCBs would be subject to regulations framed under FEMA and guidelines issued by the RBI. In addition, transfer of the SGrBs by FPIs would be subject to applicable SEBI regulations in respect of FPIs, as modified from time to time.

23. See here.

24. The January 19 Press Release clarified that the SGrB auction would be conducted on the basis of yield for new security, and on the basis of price for securities which were re-issued. In the event of re-issuance made on the basis of price, the coupon would be pre-determined. Accordingly, bidders would need to quote the price (per INR 10,000 – stocks will be issued for a minimum amount of INR 10,000 (nominal) and in multiples of INR 10,000 thereafter) at which they wished to purchase the SGrBs. Alternatively, when the issuance was made on the basis of yield, the coupon of the SGrBs would be decided in an auction conducted by the RBI. The SGrBs would carry the same coupon rate until maturity.

25. Under this method, competitive bids offered with rates up to and including the maximum rate of yield, or the prices up to and including the minimum offer price, as determined by the RBI, would be accepted at the maximum rate of yield or at the minimum offer price so determined. Bids which were quoted higher than the maximum rate of yield or lower than the minimum price (as determined by the RBI in consultation with the Indian government) would be rejected.

26. See here.

27. See here.

28. See here.

29. See here.

30. Available here.

31. Available here.

32. See here.

33. See here and here.

34. See here.

35. See here.

36. BCD means the customs duty levied under the Customs Act, 1962.

37. See 'Memorandum Explaining the Provisions in the Finance Bill,' available here.

38. AIDC means a duty of customs that is levied under Section 124 of the Finance Act, 2021.

39. One of the main intended outcomes of NGHM by the year 2030 includes the development of an annual production capacity of at least 5 MMT of GH.

40. The initial financial outlay for NGHM will involve an aggregate amount of approximately INR 200 billion (about USD 2.2 billion).

41. FAME II aims at providing incentives to: (i) buyers in the form of upfront reduction in the purchase price of EVs (including under income tax), and (ii) support demand for a specified number of EVs across categories. See here.

42. See here.

43. See here.

44. The DSM Regulations, available here, entered into force with effect from December 5, 2022.

45. See here.

46. See here.

47. See here.

48. The 'multi-modal connectivity' referred to in the NMP is expected to provide integrated and seamless connectivity for the movement of people, goods, and services from one mode of transport to another. In sum, it is aimed to facilitate 'last mile' connectivity with respect to infrastructure and reduce travel time.

49. See here and here.

50. See here.

51. See here.

52. For instance, legislative amendments are proposed to be made to existing building and construction laws to ensure the integration of charging infrastructure into all new constructions and buildings across cities. Further, TNEVP 2023 also provides for revision of power tariffs for public charging stations.

53. See here.

54. See here.

55. For example, see here, here, and here.

56. Available here.

57. Also see here.

58. See here.

59. See here.

60. Available here.

61. Available here.

62. See here.

63. See here.

64. See here.

65. See here and here.

66. Available here.

67. Available here.

68. See here.

69. See here.

70. See here.

71. For instance, see here.

72. Also see here. MNRE may be planning to release finalized tender documents soon.

73. See here.

74. See here.

75. Available here.

76. See here.

77. See here.

This insight/article is intended only as a general discussion of issues and is not intended for any solicitation of work. It should not be regarded as legal advice and no legal or business decision should be based on its content.