FACTSHEET - ISTS CHARGES WAIVER FOR WEST BENGAL - Decoding the impact on

This socialization mechanism has had an uneven impact on the transmission bills of states based on their overall dependence on the ISTS network for power procurement and the share of RE in it. [...] However, accounting for the amount apportioned back to the state, the net impact on the transmission bill has been limited to -4.8 percent. [...] • Meanwhile, the policy of focusing on ‘RE-rich’ areas is necessitating massive investments in ISTS projects to evacuate power from ‘RE-rich states.’ These investment costs are being recovered through the national component (NC)-RE of the ISTS charges, burdening even the states that do not procure ISTS RE power. [...] • In the case of West Bengal, the waiver and apportionment mechanism lead to a net increase in the transmission bill, to the tune of nearly I54 million per month. [...] • In fact, the state is having to counter this through several of their own exemptions provided to industries under the West Bengal Policy on Co-generation and generation of electricity from Renewable sources of energy, 2012.