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Ministry of Power Eases Land Norms for ISTS Projects to Boost Transmission Efficiency

The Ministry of Power has updated the Standard Bidding Documents (SBDs) used for tariff-based competitive bidding (TBCB) in inter-state transmission system (ISTS) projects. These projects, built on a BOOT (Build, Own, Operate, and Transfer) model, are vital for connecting renewable energy sources across India. One major change in the amendment is increasing the permissible location radius for load-serving substations from 3 km to 5 km. This move aims to ease land acquisition challenges and allow developers more flexibility during project planning and execution.

However, the rules for generation pooling substations (still at 3 km) and intermediate substations (10 km) remain unchanged. While this change may appear small, it carries big benefits — allowing better alignment with the local geography, smoother regulatory clearances, and reduced project delays.

Transmission projects often get stuck due to land and Right-of-Way (RoW) issues. The amendment is expected to help developers avoid delays and reduce cost overruns, making projects more financially viable and attractive to investors. With India pushing toward its 500 GW non-fossil energy goal, improved transmission infrastructure is essential — especially to handle the variable output from solar and wind. This step improves the adaptability and speed of ISTS rollouts aligned with the growth of renewable energy.