GS Paper - 3 (Energy)

The Ministry of Power on 23 October 2021 announced new rules to sustain economic viability of the sector, ease financial stress of various stakeholders and ensure timely recovery of costs involved in electricity generation. The ministry notified rules for the sustainability of the electricity sector and promotion of clean energy to meet India's commitment towards climate change.

What the rule said

  1. The rules notified by the Ministry of Power under Electricity Act, 2003 are in the interest of the electricity consumers and the stakeholders.
  2. The rules include Electricity (Timely recovery of costs due to Change in Law) Rules, 2021.
  3. The other rule is Electricity (Promotion of generation from renewable sources of energy by addressing Must Run and other matters) Rules, 2021.
  4. The ministry explained timely recovery of the costs due to change in law is very important as the investment in the power sector largely depends upon the timely payments.
  5. At present, the pass through under change of law takes time. This impacts the viability of the sector and the developers get financially stressed. The rules would help in creating an investment friendly environment in the country.


  1. The energy transition is happening across the globe. India has also made commitments to bring about energy transition.
  2. India has also announced international commitment to set up 175 GW of RE capacity by 2022 and 450 GW by 2030.
  3. The ministry said these rules will help in achieving the targets of RE generation. This will ensure that the consumers get green and clean power and secure a healthy environment for the future generation.