India’s Electricity Sector Quarterly Round-Up July-September 2026

Key Notifications

Parliament enacts the Mines and Minerals (Development and Regulation) Amendment Act, 2026

The Mines and Minerals (Development and Regulation) Amendment Act, 2026 (Act No. 20 of 2026) (MMDR Amendment Act) received Presidential assent and was published in the Gazette of India on 17 August 2026, further amending the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The MMDR Amendment Act will come into force on a date notified by the Central Government and provides, inter alia, as follows:

1. Section 2 of the MMDR Act (declaration of expediency of Central control over the regulation of mines) is amended to cover the regulation of “mines and mineral-bearing lands”, extending central control beyond mines and expressly bringing “mineral-bearing lands” within the Centre’s jurisdiction.
2. A new clause is inserted in Section 3 of the MMDR Act defining “mineral-bearing land” as land containing minerals in accordance with the parameters prescribed under clause (a) of sub-section (2) of Section 5 of the MMDR Act.
3. A new Section 9D limits a State Government’s imposition of any tax, cess or levy on mineral rights or mineral-bearing lands, whether based on mineral quantity or value, except in accordance with conditions or restrictions prescribed by the Central Government.
4. Any such tax, cess or levy imposed by a State Government that was neither deposited with nor recovered by the State Government before commencement of the MMDR Amendment Act is deemed invalid at all material Any amount already deposited or recovered before commencement is not refundable.
5. Section 13(2) of the MMDR Act (rule-making power of the Central Government) is amended to insert clause (ta), empowering the Central Government to prescribe conditions or restrictions on imposing a tax, cess or levy under Section 9D(1).

Central Government notifies the Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Rules, 2026

The Central Government, on 14 August 2026, issued the Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Rules, 2026 (SHANTI Rules) under Section 84(1) and other relevant provisions of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (SHANTI Act), superseding six earlier atomic energy rules, including the Atomic Energy (Radiation Protection) Rules, 2004 and the Civil Liability for Nuclear Damage Rules, 2011. The SHANTI Rules apply from publication in the Official Gazette and establish the licensing, liability and institutional framework for nuclear energy activities in India.

They provide, inter alia, as follows:

1. Composite, non-severable licences covering the lifecycle from construction to decommissioning may be granted for nuclear power plants/ reactors (Part A), nuclear fuel fabrication facilities (Part B), uranium and thorium exploration/mining (Part C, restricted to Government or Government-controlled entities for mining above threshold grade), milling/ ore processing plants (Part D), radiation-source manufacture (Part E), and foreign/domestic trade and transportation (Part F). Each category requires demonstrated financial, managerial and technical capability. Pre-licensing consultation and in-principle approval are available for nuclear power plants.
2. For nuclear power plants/reactors, technology may be sourced from the original technology developer or a licensed technology provider, subject to regulatory certification in the country of origin, no adverse impact on India’s interests and conformity with national policies. Licensing hold points apply before construction, fuel receipt, initial fuel loading and renewal.
3. Spent fuel must be safely stored for a cooling period determined by the Atomic Board before repatriation, if contractually required, or delivery to the Central Government under the national spent fuel management policy. Radioactive waste is managed under the national radioactive waste management policy and Board authorisation.
4. Research and development not involving radioactive materials does not require a licence. Licence applications follow a structured process; licences remain valid through the design life or mining concession period, are renewable, and require written Board confirmation for life extension.
5. Licensees have comprehensive compliance obligations covering general duties, employment conditions for radiation workers (minimum age 18 and restrictions for pregnant/lactating workers), record maintenance, and responsibilities of service providers, technology developers, manufacturers, suppliers and emergency response agencies.
6. Safety provisions  address  exclusions  from  regulatory  control  for non-amenable exposures; restrictions on practices such as deliberate radioactive addition to consumables; justification of practices; non-delegable prime responsibility for safety; medical exposure protocols; radioactive waste management; and emergency and existing exposure situations.
7. The Central Government provides chargeable services for radiological protection, environmental surveillance, emergency preparedness, stakeholder awareness, centralised radioactive waste management, quality assurance and training/certification recognition. It may conduct inspections and investigations, including search and seizure with police assistance where necessary, and take enforcement action (modification, suspension, cancellation or derecognition). Affected persons may seek review before the Atomic Energy Redressal Advisory Council or appeal to the Appellate Tribunal.
8. Operators bear strict, no-fault liability for nuclear damage under the Act, must maintain insurance/ financial security within the Second Schedule liability limits (reviewed every five years by an expert group), and must report nuclear incidents within prescribed
9. Radiation damage (non-nuclear) liability rests with the licensee, safety-authorisation holder or consignor, subject to financial security under Schedule II. Claims are investigated by an Expert Advisory Committee, with compensation determined by the Central Government.
10. Tariff for electricity, process heat and other nuclear-energy services is fixed under Section 37 of the Act on a Committee’s recommendations. The Act establishes a Nuclear Liability Fund and a Spent Fuel Management Fund, funded through operator levies, and requires financial security for decommissioning nuclear power plants/reactors and other facilities.
11. The Central Government may acquire mining rights, facilities, plants, materials or equipment under Section 33 of the Act, including by assuming control after licence cancellation or plant abandonment through an Administrator who invites eligible persons to take over the licensed

Atomic Energy Regulatory Board notifies the Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Regulations, 2026

The Atomic Energy Regulatory Board (Atomic Board), on 14 August 2026, issued the Draft Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Regulations, 2026 (SHANTI Regulations) under Section 85(1) and other enabling provisions of the SHANTI Act. The SHANTI Regulations apply from publication in the Official Gazette and establish the safety-authorisation framework for nuclear facilities, plants, mines and radiation facilities in India.

They provide, inter alia, as follows:

1. Atomic Board safety authorisation is required for the nuclear facilities, plants and mines specified in Schedule I, for which a licensing authority has granted a licence, and for the radiation facilities listed there. The Atomic Board may exempt practices or radiation sources from regulatory control where exposure is too low to warrant elaborate control, subject to registration where
2. For nuclear power plants or reactors (Part A), the licensee must obtain design approval before successive safety-authorisation stages for siting, construction, commissioning, operation and decommissioning; each stage requires specified documentation. Renewal requires a periodic safety review, and life extension beyond the design life requires written confirmation from the Atomic Board that the facility can operate safely.
3. Similar staged safety-authorisation regimes apply, commensurate with hazard potential, to other nuclear facilities and plants (Part B), mines (Part C) and radiation facilities (Part D). Radiation facilities also require type approval of equipment/sealed sources (Regulation 28), procurement approval (Regulation 30) and approval to transfer disused/decayed sources (Regulation 34).
4. Radioactive waste management requires separate Atomic Board authorisation for storage, transfer and disposal (Regulation 35). Foreign/domestic trade and transport of radiation sources require safety authorisation for import, export, domestic trade and transport, respectively (Regulations 36 to 41).
5. Safety authorisation remains valid for ten years or the licence validity period, whichever is shorter, subject to renewal, extension and transfer. Transfer requires prior Atomic Board permission and is coextensive with licence transfer. Authorisation may be suspended or cancelled for reasons including misrepresentation or conviction of an offence under the SHANTI
6. Safety-authorisation holders bear non-delegable prime responsibility for safety and must comply with the authorisation’s terms and conditions, maintain emergency-preparedness arrangements, and ensure radiation-protection programmes, personnel monitoring, health surveillance and radiation-warning symbols.
7. Special provisions govern medical exposure, food irradiation (subject to absorbed-dose limits and Schedule II dosimetry requirements) and waste-management responsibilities. Radiation-source suppliers may supply only type-approved sources and must facilitate safe disposal or repatriation.
8. The Atomic Board has residuary powers, may relax requirements without adversely affecting safety, and may amend the five Schedules.

Union Cabinet approves the Galvanizing Organic Bio-Agro Resources Dhan – National Circular Bioenergy Scheme

On 6 August 2026, the Union Cabinet approved the Galvanizing Organic Bio-Agro Resources Dhan (GOBARdhan) – National Circular Bioenergy Scheme with an outlay of INR 23,731 crore. The Ministry of Petroleum and Natural Gas (MoPNG) will implement the Scheme from FY 2026–27 to FY 2035–36. It aims to strengthen domestic energy production in light of India’s dependence on natural gas imports for nearly half its requirements and recent geopolitical disruptions affecting global liquefied natural gas supply routes.

The Scheme provides, inter alia, as follows: 

1. The Scheme focuses on converting organic waste, including cattle dung, crop residue, kitchen waste and market waste, into Compressed Biogas (CBG) and bio-slurry, making CBG a key pillar of India’s clean energy mix.
2. GOBARdhan consolidates all CBG initiatives under one ministry, replacing the earlier multi-ministry framework, and creates a unified CBG value-chain platform by building on existing initiatives, including the Sustainable Alternative Towards Affordable Transportation scheme, Market Development Assistance scheme, Biomass Aggregation Machinery scheme, Development of Pipeline Infrastructure scheme and central financial assistance under the National Bioenergy Programme.
3. City Gas Distribution (CGD) entities must procure CBG under phased offtake obligations of 3% in FY 2026–27, 4% in FY 2027–28 and 5% from FY 2028–29 onwards, creating a predictable long-term market, improving project viability and encouraging private investment.
4. A government-backed administered price of INR 2,110 per metric million British thermal unit provides long-term revenue certainty to producers while supporting consumer affordability through government-funded support and a substantially wider gas pool that protects consumers from material price
5. Eligible greenfield CBG projects may receive capital support of up to INR 2 crore/tonne/day of installed CBG capacity; brownfield expansion projects are also eligible.
6. Pipeline infrastructure development: the Scheme supports cluster-based and standalone pipelines connecting CBG plants with trunk pipelines and CGD networks, reducing evacuation costs, improving market access and increasing utilisation of domestically produced CBG.
7. Credit guarantee support: a dedicated mechanism will cover up to 85% of eligible loans for MSME-led CBG projects.
8. A dedicated fund supports district-level implementation and local CBG value chains, including feedstock mapping, aggregation infrastructure, district-level planning, technology adoption, organic-manure value addition, capacity building and stakeholder

Ministry of Power removes requirement for Route Approval Certificate from Power and Telecommunication Co-ordination Committee for transmission lines

The Ministry of Power (MoP), Government of India (GoI), by Office Memorandum (OM) dated 21 July 2026, removed the requirement for a Route Approval Certificate (RAC) from the Power and Telecommunication Co-ordination Committee (PTCC) for constructing or operating electricity transmission lines. The OM sets out a revised procedure for residual interference concerns involving railways and defence communication networks during transmission-line development and operation.

It provides, inter alia, as follows:

1. Entities constructing or operating transmission lines of 66 kilovolts (kV) or below need not give prior notice to the railway or defence authorities of potential induction or interference from those
2. After finalising the route alignment of an electric line of 220 kV and above, the entity constructing or operating the line must inform the railways and defence authorities through the Central Electricity Authority (CEA) and send copies of notifications issued under Section 164 of the Electricity Act, 2003 (Electricity Act) to the Ministry of Defence and Railway Board.
3. The relevant authorities must respond with any mitigation measures within 60 (sixty) days of receiving the route alignment; otherwise, deemed no objection The concerned entity bears the mitigation or protection costs determined and communicated by the relevant authority.
4. A difference of opinion between the entity and the affected authority on the assessment, scope, implementation, technical adequacy or cost of mitigation measures may be referred to the CEA, which will examine the issue with the parties and facilitate resolution under applicable laws, technical standards and safety requirements.
5. The relevant authority must report any failure by the entity to implement mitigation measures or pay the required costs to the CEA, which will take cognisance and ensure completion before the line is first charged.
6. States may nominate the state transmission utility or another body as nodal agency to perform CEA-like functions for electric lines up to and including 132 kV.

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