Page 52 - Policy Economic Report - March 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

5. Treatment of Cross-Subsidy Surcharge and Additional Surcharge

Pending verification of captive status, Cross-Subsidy Surcharge (CSS) and Additional Surcharge (AS) will
not be levied if the captive users submit the prescribed declaration in accordance with the procedures
issued by the NLDC (for inter-state cases) or the State nodal agency (for intra-state cases).

If a generating plant subsequently fails to qualify as a captive generating plant upon verification, the
applicable CSS and AS will become payable along with carrying cost. The carrying cost will be calculated
at the base rate of the Late Payment Surcharge under the Electricity (Late Payment Surcharge and
Related Matters) Rules, 2022.

6. Applicability of the Amendments

To facilitate smooth implementation, certain provisions relating to proportionate consumption in AoP
structures, the verification framework, and the treatment of CSS and AS will come into effect
from 1st April 2026. Other amendments will take effect immediately.

Reform for Supporting industrial growth and clean energy transition

By enabling industries to access reliable and cost-competitive electricity through captive generation, the
reforms will strengthen industrial competitiveness and support India’s transition towards a sustainable
energy future. The reforms also align with the Government’s broader vision of energy self-reliance,
while supporting India’s vision of achieving Viksit Bharat @ 2047.

Union Power Minister Inaugurated Prakriti 2026 & Launched Indian Carbon Market Portal, Reinforces
India’s Climate Commitments

The International Conference on Carbon Markets- Prakriti 2026, the flagship event of the Government of
India, organized by the Bureau of Energy Efficiency under the patronage of the Ministry of Power and
Ministry of Environment, Forest and Climate Change, commenced in New Delhi. The conference,
organised as part of Bharat Electricity Summit 2026, provides a high-level platform for national and
international experts, policymakers, industry leaders, researchers, and practitioners to deliberate on the
evolving dynamics of carbon markets, their role in climate action, and opportunities for India’s green
growth. This year’s theme - “Unlocking Carbon Finance for NDC Implementation through Global
Partnerships and Digital Pathways” reflects India’s focus on mobilizing finance, strengthening
cooperation, and leveraging digital innovation to accelerate climate action. During the event, the Indian
Carbon Market Portal (www.indiancarbonmarket.gov.in) - a central platform for implementing and
administering the Indian Carbon Market was launched by Shri Manohar Lal the Union Minister for Power
& Housing and Urban Affairs, Shri Shripad Naik Minister of State for Power, and other dignitaries.

Inaugurating the portal, Shri Manohar Lal, highlighted India’s leadership in advancing climate
commitments under the visionary guidance of the Prime Minister. He stated, India has demonstrated
that climate responsibility and economic development can go hand in hand. Through initiatives such as
the Carbon Credit Trading Scheme (CCTS), renewable energy expansion, and energy efficiency

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