Law Updates

Subject

Summary: The Taxation and Other Laws (Amendment) Act, 2026 has been assented to by the President and published in the Gazette of India on 17 August 2026 as Act No. 21 of 2026. This act is an amendment of the Payment and Settlement Systems Act, 2007, the Income-tax Act, 2025, and the Finance Act, 2026. Moreover, this act will repeal the Income-tax (Amendment) Ordinance, 2026 without prejudicing any action taken under it. The Act does not deal with a single tax change. It brings together several targeted measures. These include revised safe-harbour conditions for offshore investment funds managed from India, income-tax exemptions for specified foreign investors and foreign companies, longer support for electronics contract manufacturing, revised data-centre conditions, changes affecting business trusts and their special-purpose vehicles, and a new mechanism for identifying electronic payment modes on which charges cannot be imposed. The changes are important for foreign companies, fund managers, institutional investors, business trusts, electronics manufacturers, diamond businesses, banks, and payment-system providers. They are also important for tax and finance teams because different provisions apply from different dates, and several benefits depend on conditions, documents, or procedures that are still to be prescribed. Taxation and Other Laws (Amendment) Act, 2026 at a Glance Particular Verified detail Issuing authority Ministry of Law and Justice, Legislative Department Document type Act of Parliament Act number No. 21 of 2026 Gazette details Gazette of India, Extraordinary, Part II, Section 1, No. 37 Gazette identification CG-DL-E-17082026-275521 Date of assent 17 August 2026 Date of publication 17 August 2026 General commencement Deemed to have come into force on 1 April 2026, unless the Act provides otherwise Special commencement Payment-law amendment: 17 August 2026, specified rough-diamond and electronics-warehousing provisions: 1 October 2026 Laws amended Payment and Settlement Systems Act, 2007, Income-tax Act, 2025, Finance Act, 2026 Main stakeholders Offshore funds, Indian fund managers, FIIs, BIS, foreign diamond and electronics businesses, business trusts, SPVs, banks, and payment-system providers Main development Revised fund safe harbour, new or extended tax exemptions, business-trust changes, and revised electronic-payment mechanism General compliance deadline No single deadline applies to the whole Act Nature of requirements Mandatory statutory amendments, with several conditional exemptions and later-prescribed procedures The critical issue to consider is the fact that the date appearing in the Gazette is not necessarily the effective date of all the changes. Each provision needs to be mapped individually before making any updates. Legal Status and Effective Dates This is an enacted law. The enactment process cannot be termed as proposals since the bill has not been called the Taxation and Other Laws (Amendment) Bill 2026. As per the gazette, this bill has been passed in Parliament, given assent by the President on 17th August 2026, and has been gazetted. Section 1 gives a general rule stating that, unless another specific date is specified, the Act shall be deemed to come into effect on 1 April 2026. There are two categories of provisions that have different dates of effect. Provision or event Relevant date Nature of date Practical meaning General commencement 1 April 2026 Deemed commencement Applies to provisions for which no separate date is stated President’s assent 17 August 2026 Legal assent The Bill became an Act Gazette publication 17 August 2026 Publication date The Act was officially published Payment and Settlement Systems Act amendment 17 August 2026 Express effective date Section 10A wording changes from the date of Gazette publication Rough-diamond exemption under serial number 13F 1 October 2026 Express effective date The new exemption operates from this date, subject to its conditions Customs-bonded electronics warehousing exemption under serial number 13G 1 October 2026 Express effective date The new exemption operates from this date, subject to its conditions Related definitions in Notes 5 and 6 1 October 2026 Express effective date The rough-diamond and electronics definitions support serial numbers 13F and 13G Sunset for serial numbers 13F and 13G Tax year ending 31 March 2041 Last stated availability point The exemptions are stated to remain available up to this tax year, subject to conditions The Act does not specify a filing date for all affected businesses. The 90-day rule to be discussed later applies only to eligible investment funds. Regulatory and Legal Framework The Act operates across three different legal areas. Payment regulation The Payment and Settlement Systems Act, 2007 regulates payment systems in India. Section 10A is titled “Bank, etc., not to impose charge for using electronic modes of payment.” Before this amendment, the provision referred to electronic modes prescribed under section 269SU of the Income-tax Act, 1961. The 2026 amendment replaces that reference with one or more electronic modes that the Central Government may specify by notification. Income-tax framework The Income-tax Act, 2025, is the main law affected by the amendment. The Act replaces Schedule I and changes Schedules IV and V. Schedule I deals with the conditions under which certain fund-management activities do not create a business connection in India for an eligible offshore investment fund. Schedule IV lists income that is not included in the total income of specified eligible persons, subject to stated conditions. Schedule V deals with income not included in the total income of certain eligible persons, including investment funds, business trusts, and their unit holders. Finance Act rate framework The Finance Act, 2026 contains the applicable rate framework for the relevant tax year. The amendment creates separate entries for a domestic company that is a special-purpose vehicle referred to in Schedule V and for other domestic companies within the stated categories. Because these provisions interact, a business should not read one amended schedule in isolation. For example, the treatment of a business-trust unit holder under Schedule V and the rate applicable to its special-purpose vehicle under the Finance Act may need to be reviewed together. Act-Wise Summary of Amendments Parent law Provision amended Nature of change Effective date Mainly affected parties Payment and Settlement Systems Act, 2007 Section 10A Changes how no-charge electronic payment modes are identified 17 August 2026 Banks, payment-system providers, merchants, and payment users Income-tax Act, 2025 Schedule I Replaces the complete safe-harbour schedule for eligible investment funds and managers 1 April 2026 under the general commencement clause Offshore funds and Indian fund managers Income-tax Act, 2025 Schedule IV, serial number 13A Revises the contract-manufacturing condition and extends availability from 2030-31 to 2040-41 1 April 2026 under the general commencement clause Foreign electronics companies and Indian contract manufacturers Income-tax Act, 2025 Schedule IV, serial number 13C Omits clause (a) from the applicable conditions 1 April 2026 under the general commencement clause Foreign companies using specified data centres Income-tax Act, 2025 Schedule IV, serial numbers 13D and 13E Adds government-security income exemptions 1 April 2026 under the general commencement clause FIIs and the Bank for International Settlements Income-tax Act, 2025 Schedule IV, serial number 13F Adds rough-diamond income exemption 1 October 2026 Specified foreign diamond businesses Income-tax Act, 2025 Schedule IV, serial number 13G Adds exemption connected with component storage in a customs-bonded warehouse 1 October 2026 Foreign electronics companies and Indian contract manufacturers Income-tax Act, 2025 Schedule IV notes Adds or revises definitions for electronic goods, data centres, government securities, rough diamonds, and customs-bonded arrangements Depends on the related provision Multiple stakeholders Income-tax Act, 2025 Schedule V, serial number 5 Omits the dividend-related restriction in clause (b) 1 April 2026 under the general commencement clause Business-trust unit holders and SPVs Finance Act, 2026 Section 3 rate tables Creates separate 10% and 25% entries for relevant domestic-company categories 1 April 2026 under the general commencement clause Domestic companies and business-trust SPVs Taxation and Other Laws (Amendment) Act, 2026 Section 7 Repeals the Income-tax (Amendment) Ordinance, 2026 and saves actions already taken General commencement applies, saving protects prior action FIIs, BIS, and tax administration This map shows why the Act should not be presented as a single exemption scheme. Each change has its own taxpayer, income category, condition, and operational consequence. Change to Electronic Payment Mode Requirements Section 2 amends Section 10A of the Payment and Settlement Systems Act, 2007. Earlier, the condition of free was linked with the electronic means specified under section 269SU of the Income-tax Act, 1961. In the new provision, the reference is to one or more electronic payment methods as specified by the Central Government. In simple terms, the legal authority to identify the covered payment modes now sits directly within the amended wording of the payment law. The underlying section remains a restriction on banks and system providers imposing charges on persons using the covered electronic modes. What does this mean in practice? Notification issued by the Central Government regarding the electronic means subject to the amendment of the section should be monitored by banks and payment system service providers. Review of the payments contract, price list, and other correspondence with merchants may be required upon issuance of such notification. Merchants should not assume that every digital payment method automatically falls within the no-charge rule. The Act itself does not list the covered modes. It creates the notification mechanism. The amendment, by itself, does not create a new licensing requirement for merchants or payment users. This provision took effect on 17 August 2026, the date on which the Act was published in the Official Gazette. Revised Safe-Harbour Conditions for Eligible Investment Funds Schedule I of the Income-tax Act, 2025 is substituted by Section 3. The schedule provides for the provision of section 9(12), under which fund management activities that qualify for this provision, when done in India, shall not, by themselves, constitute a business connection in India of the eligible offshore investment fund. The safest way to view this provision is as a conditional safe harbour. This means that all income of an offshore fund will not necessarily be exempt, but rather that the fund will not be deemed to have a business connection in India solely because the qualifying management activity was carried out by an eligible fund manager. Conditions for the eligible investment fund The fund must be established, incorporated, or registered outside India, collect money from its members, and invest that money for their benefit. It must also meet all applicable conditions below. Non-resident status: The fund must not be resident in India. Eligible jurisdiction: It must either be resident in a country or specified territory with which India has an agreement referred to in section 159(1) or section 159(2), or be established, incorporated, or registered in a country or territory notified by the Central Government. Indian-resident participation limit: Direct aggregate participation or investment by persons resident in India must not exceed 5% of the fund’s corpus on 1 April and 1 October of the tax year. Fund-manager contribution relief: While calculating the 5% limit, a contribution of up to Rs. 25 crore made by the eligible fund manager during the first three years of the fund’s operation is not counted. Four-month cure period: If the Indian-resident participation exceeds 5% on 1 April or 1 October, the condition is treated as satisfied if the participation is brought within the limit within four months of the relevant testing date. No Indian business management: The fund must not directly or indirectly carry on, control, or manage a business in India. No other business connection: No person acting for the fund may carry out an activity creating a business connection in India, except the activities undertaken by the eligible fund manager on the fund’s behalf. Why the testing dates matter This test is not referred to as a general year-end test. It shows the test dates of 1 April and 1 October. If a fund exceeds the threshold on either of those days, it should document this excess along with its reasons and correction date. The four-month cure provision is helpful but not an excuse for disregarding the threshold. What “corpus” means The corpus for this schedule is the amount of money the qualified investment fund has raised for investment as of a certain date. This is important because the 5% participation rule is computed based on this amount.. Conditions Applicable to Eligible Fund Managers The safe harbour also depends on the person managing the fund. An eligible fund manager must be engaged in fund-management activity and satisfy four conditions. Independence: The manager must not be an employee of the eligible investment fund or a connected person of the fund. Regulatory registration: The manager must be registered as a fund manager or investment adviser under the specified regulations. Ordinary business activity: The manager must act in the ordinary course of its fund-management business. Profit-entitlement ceiling: The manager and its connected persons must not be entitled, directly or indirectly, to more than 20% of the profits arising to the eligible fund from transactions carried out through that manager. The specified regulations are: Securities and Exchange Board of India (Investment Advisers) Regulations, 2013, Securities and Exchange Board of India (Portfolio Managers) Regulations, 2020, or Other regulations made under the Securities and Exchange Board of India Act, 1992 and notified for this purpose. The definition of “connected person” is linked to section 184(5) of the Income-tax Act, 2025. Funds and managers should therefore examine employment relationships, ownership, control, profit-sharing, and connected-person arrangements together rather than checking the manager’s registration alone. Reporting Obligations and the 90-Day Timeline Every eligible investment fund must furnish information about its activities for each tax year within 90 days after the end of that tax year. The fund must: submit a statement in the prescribed form to the prescribed income-tax authority containing information about fulfilment of the Schedule I conditions, and provide other relevant information or documents that may be prescribed. The schedule also states that its provisions will apply in accordance with the guidelines and in the manner prescribed by the Board. Compliance item Responsible person Due date Form or recipient Present position in the Act Statement confirming fulfilment of Schedule I conditions Eligible investment fund Within 90 days after the end of the tax year Prescribed form to the prescribed income-tax authority Form and authority are to be prescribed Other relevant information or documents Eligible investment fund As prescribed within the statutory framework Manner to be prescribed The exact list is not stated in the Act Application of Board guidelines Fund and manager, as applicable According to future guidance Board-prescribed manner Details remain to be prescribed As a practical control, a fund should not wait until the filing window opens to collect evidence. It should maintain residency documents, participation calculations, capital-account records, manager-registration evidence, profit-entitlement calculations, and records of activities performed in India throughout the year. New and Extended Income-Tax Exemptions Section 4 makes several changes to Schedule IV. These provisions exclude specified income from total income only when the eligible person and every stated condition are satisfied. Exemption or relief Eligible person Qualifying income or activity Key condition Effective period Government-security income Foreign Institutional Investor Interest and capital gains from sale, exchange or transfer of government security Information must be furnished in the prescribed form and manner General commencement from 1 April 2026 Government-security income Bank for International Settlements Interest and capital gains from sale, exchange or transfer of government security Information must be furnished in prescribed form and manner General commencement from 1 April 2026 Rough-diamond income Specified foreign company Income from sale of rough diamonds Sale in notified special zone and prescribed information compliance From 1 October 2026 up to the tax year ending 31 March 2041 Electronics component warehousing Specified foreign company Income connected with the storage of components in a customs-bonded area and their sale under the stated arrangement Supply to contract manufacturer and prescribed information compliance From 1 October 2026 up to tax year ending 31 March 2041 Existing electronics contract-manufacturing relief Foreign company covered by serial number 13A Existing qualifying income under the entry A contract manufacturer must produce specified electronic goods on behalf of the foreign company for consideration Availability extended from 2030-31 to 2040-41 Specified data-centre relief Eligible foreign company under serial number 13C Existing qualifying income under the entry Revised data-centre definition and remaining conditions apply General commencement from 1 April 2026 Government-security exemption for FIIs New serial number 13D covers a Foreign Institutional Investor. It excludes: Interest on a government security, and Capital gains arising from the sale, exchange, or transfer of a government security. The exemption is conditional on furnishing information in the form and manner to be prescribed. For this provision, “Foreign Institutional Investor” has the meaning assigned in section 210(6)(a) of the Income-tax Act, 2025. “Government security” is defined in section 2(f) of the Government Securities Act, 2006. The entry should not automatically apply to every foreign portfolio investor, debt instrument, or public-sector security. The taxpayer and instrument must fit the statutory definitions. Government-security exemption for the Bank for International Settlements Serial number 13E provides the Bank for International Settlements with the same categories of exempt income: interest on government securities and capital gains from the sale, exchange, or transfer of such securities. Schedule IV defines the institution as the Bank for International Settlements, established at the Hague Conference in 1930 and headquartered in Basel, Switzerland. This is an institution-specific exemption, not a general exemption for all foreign banks or international bodies. Repeal of the Ordinance and continuity of action The Income-tax (Amendment) Ordinance, 2026, had introduced the government-security provisions before the Act was passed. Section 7 repeals that Ordinance. The saving clause is important. It states that anything done or any action taken under the Ordinance will be treated as having been done under the corresponding provisions of the Act. This avoids a legal gap merely because an Act of Parliament has replaced the temporary Ordinance. Rough-Diamond Income Exemption and Its Conditions New serial number 13F applies from 1 October 2026. It covers income from the sale of rough diamonds earned by a foreign company falling within one of the stated categories: A foreign company engaged in diamond mining, a shareholder of such a diamond-mining company, or  a broker, aggregator, tender entity, or auction entity connected with the sale of rough diamonds. The exemption is subject to three conditions. The rough-diamond sale must take place in a notified special zone referred to in section 9(9)(c)(ii)(C). The foreign company must maintain and furnish information in the prescribed form and manner. The exemption is available only up to the tax year ending on 31 March 2041. Meaning of rough diamond The Act defines a rough diamond as a diamond that is unworked or only sawn, cleaved, or bruted, falls under Tariff Heading 7102 10, 7102 21, or 7102 31 of the First Schedule to the Customs Tariff Act, 1975, and is accompanied by a Kimberley Process Certificate. All aspects of the definition are important. It would be erroneous to consider a product as falling under the definition solely due to the fact that it is commercially labelled as a rough diamond. Practical implications for diamond businesses Qualifying foreign companies can receive a more defined tax system structure for their eligible sales within the notified special zone. Nonetheless, such eligibility is not guaranteed automatically. The transaction papers need to indicate the category in which the seller qualifies, the place of the notified special zone, tariff classification, and the respective Kimberley Process Certificate. Electronics Contract Manufacturing and Customs-Bonded Warehousing The Act contains two important electronics-related changes: an extension and revision of an existing entry and a new exemption for a component-warehousing arrangement. Extension of the existing contract-manufacturing relief The condition in relation to the contract manufacturer is replaced by the Act in serial number 13A. The amended condition requires the contract manufacturer to manufacture specific electrical items for the foreign firm as consideration. The Act also replaces the year 2030-31 with 2040-41. This extends the stated availability of the relevant exemption by ten tax years. Foreign companies and Indian contract manufacturers should review their agreements to confirm that the arrangement clearly records: production of specified electronic goods, production on behalf of the foreign company, and consideration payable for the manufacturing activity. The Act does not prescribe a standard contract format. New exemption for customs-bonded component warehousing Serial number 13G applies from 1 October 2026. It concerns income accruing or arising from storing components in a warehouse in a customs-bonded area. The eligible person is a foreign company that stores components in a warehouse so they can be provided to a contract manufacturer for the manufacture of specified electronic goods. The entry states the following conditions: The exemption is available on the sale of components by the foreign company, The contract manufacturer must produce electronic goods on behalf of a foreign company, Information must be furnished in the prescribed form and manner, and The exemption is available up to the tax year ending 31 March 2041. For this purpose: “contract manufacturer” means an Indian company that produces specified electronic goods on behalf of a foreign company in a customs-bonded area, and “customs bonded area” means a warehouse referred to in section 65 of the Customs Act, 1962. The heading of the income entry refers to income arising from storage, while one of its conditions refers to exemption on the sale of components. Businesses should therefore map the precise income stream and contractual arrangement carefully rather than applying the entry broadly to every warehousing receipt or component sale. Products Covered as Specified Electronic Goods The Act inserts Note 2A for serial number 13A. It defines specified electronic goods as: mobile phones, laptops, all-in-one personal computers, and tablets, servers and ultra-small form factor devices, sub-assemblies of the finished goods listed above, and hearables, wearables, and accessories related to the finished goods listed above. This definition is also used for the new customs-bonded warehousing entry through Note 6. Businesses should create a product-level eligibility file rather than relying only on broad commercial descriptions such as “electronics” or “components.” The file should show the relevant product, its relationship to the listed finished goods, the manufacturing arrangement, and, where applicable, the customs-bonded location. Revised Conditions for Specified Data Centres The Act makes two changes connected with serial number 13C. First, it omits clause (a) in column D of that entry. The exact consequence should be read together with the pre-amendment entry and the remaining conditions. Second, it replaces the definition of “specified data centre.” Under the new definition, a specified data centre must: be operated by an Indian company, whether the company owns or leases it, and satisfy other conditions that may be prescribed. The express recognition of leased operation is important. Ownership of the facility is no longer the only model stated in the definition. However, leasing alone is not enough because other prescribed conditions may still apply. Foreign enterprises utilizing this section must verify the identity of the Indian operator, the lease/ownership documents, the service agreement, and other terms and conditions laid out in the Act itself. Business Trusts, Unit Holders and Special-Purpose Vehicles The Act makes connected changes to Schedule V of the Income-tax Act, 2025, and Section 3 of the Finance Act, 2026. Change for business-trust unit holders Schedule V, serial number 5, deals with distributed income referred to in section 223 received by a unit holder of a business trust. Before the amendment, the conditions listed income proportions for which the exemption would not be allowed. Clause (b) covered dividend income received or receivable by the business trust from an SPV where that SPV had exercised the option under section 200. Section 5 of the 2026 Act does not include clause (b). In reality, the limitation on dividends is no longer part of the proportions that are excluded from the unit-holder exception. The limitation on interest mentioned in clause (a) and the limitation on real estate rental mentioned in clause (c) continue to apply. Separate rate entry for an SPV Section 6 amends the rate tables contained in Section 3 of the Finance Act, 2026. In respect of domestic companies falling under sections 200 and 201, the substituted entries are as follows: 10% for each domestic company, except SPV mentioned in Schedule V, Note 2, and 25% for a domestic company that is such an SPV. Within the Finance Act framework, these entries operate as the relevant surcharge-rate entries. A business trust’s SPV should therefore not assume that the standard 10% entry continues to apply merely because it is a domestic company under section 200 or 201. Meaning of SPV Schedule V, Note 2 defines the special-purpose vehicle for the relevant business-trust provision as an Indian company in which the business trust holds a controlling interest and the required percentage of shareholding or interest under the law governing the trust’s registration. The two amendments should be modelled together. The change may improve the treatment of qualifying dividend income at the unit-holder level while changing the surcharge rate applicable to the qualifying domestic-company SPV. The final result depends on the entity structure, tax regime, income flow, and applicable tax-year facts. Matters Awaiting Rules, Forms, Guidelines, or Notifications Several parts of the Act cannot be implemented fully from the statutory wording alone. Pending matter Authority or mechanism What is not stated in the Act Practical monitoring action Electronic modes covered by section 10A Central Government notification Exact electronic payment modes Banks and payment providers should monitor notifications and update pricing controls Eligible fund statement Prescribed income-tax authority and form Form, recipient, and detailed fields Funds should prepare condition-wise evidence now Other eligible fund information To be prescribed Exact document list and manner Maintain a broad audit file until details are issued Other eligible fund information Board Operational application of Schedule I Fund managers should monitor Board guidance FII and BIS reporting Prescribed form and manner Filing format, authority and procedure Investors should preserve instrument and income records Rough-diamond information Prescribed form and manner Detailed filing and record requirements Maintain zone, tariff, and certificate evidence Electronics warehousing information Prescribed form and manner Detailed filing and record requirements Maintain warehouse, sale and manufacturing records Specified data-centre conditions To be prescribed Conditions beyond Indian-company operation Review later rules before claiming treatment Other eligible fund-manager regulations Government notification under SEBI framework Any additional recognised regulations Confirm registration route before relying on safe harbour An expression such as “as may be prescribed” is not a minor drafting detail. It means the Act creates the framework but leaves part of the operating process to later rules, forms, guidelines, or notifications. Stakeholder-Wise Business Impact Stakeholder Immediate impact Likely operational or cost effect Priority concern Offshore investment funds New Schedule I conditions apply Participation testing and evidence systems may need revision 5% testing on 1 April and 1 October Indian fund managers Registration, independence, and a 20% profit ceiling remain central Contracts and connected-person analysis may need review Maintaining eligible-manager status FIIs Government-security interest and capital gains may qualify for exemption A new reporting process will need to be implemented Correct taxpayer and security classification Bank for International Settlements Institution-specific government-security exemption Prescribed information process must be followed Form and manner still pending Foreign diamond companies New exemption may apply to qualifying zone sales Classification, certification, and transaction records are essential Kimberley certificate and notified-zone condition Foreign electronics companies Longer relief and new bonded-warehouse exemption may apply Contracts, customs structure, and product mapping may need changes Matching the arrangement to serial numbers 13A or 13G Indian electronics contract manufacturers Their role becomes part of foreign-company eligibility Contract and warehouse evidence may increase Production on behalf of a foreign company for consideration Foreign companies using data centres Revised definition recognises leased operation by Indian companies Existing operator and lease arrangements should be checked Future prescribed conditions Business trusts and unit holders Dividend-related restriction is removed from Schedule V entry Distribution and tax models may change Correct characterisation of income Business-trust SPVs Separate 25% rate entry applies in the relevant Finance Act tables Tax provisioning may increase for covered SPVs Coordinating entity-level and unit-holder treatment Banks and payment-system providers Covered electronic modes will be identified through notification Pricing systems and agreements may need updates Do not charge on notified covered modes Impact on offshore funds and managers Although the list of conditions has been consolidated into a more succinct statutory format, it still requires continuous monitoring. The 5% participation criterion for Indian residents, the cure provision, the 20% manager profits restriction, and no other Indian businesses require information from the tax, legal, investment relations, and operations departments. Impact on electronics and diamond businesses The newly introduced clauses may be advantageous for cross-border transactions if they satisfy some requirements, but they are paperwork-based. The availability of such relief will depend on the categorization of the products, contractual arrangement, details about the customs bonded zone, and prescribed reporting. Impact on business trusts The unit-holder and SPV amendments pull in different directions and should be analysed together. A simplified statement that the amendment only “reduces tax” or only “increases tax” would be misleading. The result depends on where income arises, how it moves through the structure, and which entity bears the relevant tax or surcharge. Risks and Practical Challenges The Act does not include any penalties in its seven sections. It is recommended that the business avoid making false promises regarding the possibility of fines or even prosecution. More direct problems include ineligibility, insufficient evidence, or using benefits too soon. Wrong Effective Date: Applying a 1 October exemption from 1 April could produce an incorrect tax position. Overbroad Eligibility: Treating every foreign investor, diamond trader, electronics component, or data centre as covered could lead to an unsupported claim. Missing Prescribed Filings: The exemption would be lost if the prescribed filing is not made after the procedures have been communicated. Weak Connected-Person Analysis: An offshore fund may satisfy the visible participation limit but still face issues under fund-manager independence or profit-entitlement conditions. Insufficient Product Classification: Commercial product names may not establish eligibility under the statutory list or customs tariff headings. Mismatch Between Contract and Reality: The agreement for manufacturing/warehousing could not establish whether the production was being done for the foreign entity in consideration. Lack of Integration of Taxation Tiers: Business trusts should not analyse unit-holder exemption and SPV surcharge in isolation. Communication Gap: The payment providers cannot re-engineer the charges to align with the expectations of the mode of electronic use by the government. What Businesses Should Do Next Priority Action Responsible team Relevant date or trigger Nature of action Expected outcome Immediate Identify which amendment, if any, applies to the organisation Tax and legal Now Recommended control Avoid irrelevant or overbroad implementation Immediate Map the correct commencement date provision by provision Tax Before filing or provisioning Required for correct legal treatment Correct period of application High Recalculate offshore fund participation on 1 April and 1 October Fund tax and investor relations Each testing date Statutory condition Evidence of 5% compliance or cure High Review fund-manager registration, independence and profit entitlement Legal and compliance Before relying on safe harbour Statutory condition Confirm manager eligibility High Build the 90-day fund reporting file Fund operations and tax During the tax year Statutory filing preparation Timely statement and supporting evidence High Review FII and BIS government-security income by instrument and income type Tax and finance From applicable tax year Eligibility assessment Correct exemption position High Map rough-diamond sales to zone, tariff, and certificate requirements Customs, tax and sales Before claiming relief from 1 October 2026 Statutory condition Traceable transaction eligibility High Review electronics manufacturing and warehouse contracts Legal, customs and tax Before applying serial number 13A or 13G Statutory and evidentiary control The contract aligns with the qualifying structure High Model business-trust unit-holder and SPV effects together Tax and finance Before distributions and tax provisioning Tax calculation control Avoid one-sided analysis Ongoing Monitor forms, rules, Board guidelines, and government notifications Compliance and tax On publication Recommended ongoing control Timely implementation of pending details Recommended internal evidence file Depending on the provisions concerned, firms need to retain: The Gazette and legal note in respect of the provisions, Residency and status documentation, Investor participation and corpus computation, Connected person and entitlement of profits calculation, SEBI registration proof, Government-issued identity and income proof, Notified zone and bonded customs warehouse documentation. Customs tariff classification records, Kimberley Process Certificates, manufacturing, storage, sale, and service contracts, product lists and bills of material, business-trust, unit-holder and SPV structure charts, and Copies of every prescribed statement, information filing, and acknowledgement. This list includes recommended internal controls. The Act itself does not expressly prescribe every document listed above. How Corpseed Can Help The Taxation and Other Laws (Amendment) Act, 2026 provides different requirements for investment funds, foreign companies, manufacturers, and business trusts. Corpseed can assist the impacted business entities in understanding the requirements and preparing a compliance action plan accordingly. Applicability and Compliance Assessment Corpseed can help businesses: Identifying the provisions that apply to their operations. Determining the relevant dates and conditions. Preparation of a compliance checklist for each provision. Identifying forms, filings, and record-keeping. Investment Fund and Fund Manager Review Support for eligible investment funds may include: Reviewing the 5% Indian-resident participation limit. Checking fund manager eligibility and registration. Reviewing connected-person and profit-sharing conditions. Preparing for the 90-day reporting requirement. Foreign-Company Tax Exemptions Corpseed can assist with evaluating exemptions relating to: Government securities. Rough-diamond transactions. Electronics contract manufacturing. Customs-bonded component warehousing. Specified data-centre arrangements. Business Trust and SPV Support Corpseed can help business trusts and special-purpose vehicles review: Unit-holder income treatment. Dividend-related changes. Applicable SPV surcharge rates. Tax records and supporting documents. Regulatory Monitoring Corpseed can monitor new forms, rules, guidelines, and government notifications issued under the Act and help businesses update their compliance processes accordingly. Businesses seeking an applicability review, documentation support, or a provision-specific action plan may contact Corpseed for corporate tax compliance services. The availability of any exemption or tax benefit will depend on the applicable law and the facts of each case. Key Takeaways The Taxation and Other Laws Amendment Act 2026 is an Act of Parliament that amends three key Acts of Parliament. This amendment pertains to offshore funds, foreign investment, electronics and diamond industries, data centre arrangements, business trusts, special purpose vehicles, and payment system participants. The general commencement date is 1 April 2026, but the payment-law change applies from 17 August 2026, and the new rough-diamond and electronics-warehousing exemptions apply from 1 October 2026. Eligible offshore funds must meet the 5% Indian-resident participation test on 1 April and 1 October, with a four-month cure period for an excess on a testing date. Eligible funds must furnish the prescribed statement within 90 days after the end of the tax year. FIIs and the Bank for International Settlements receive conditional exemptions for specified government-security income. The rough-diamond and bonded-electronics exemptions run up to the tax year ending 31 March 2041, subject to detailed eligibility and reporting conditions. Existing electronics contract-manufacturing relief is extended from 2030-31 to 2040-41. Business trusts should analyse the unit-holder exemption change and the separate 25% SPV surcharge-rate entry together. Several forms, conditions, guidelines and notifications remain to be issued, so ongoing monitoring is essential.

Subject

Summary: The Delhi Fire Service (Amendment) Bill, 2026 proposes to remove the express reference to the "National Building Code of India" from section 2(i) of the Delhi Fire Service Act, 2007. The words "building bye-laws" would remain. The Delhi Legislative Assembly Secretariat published the Bill for general information under a notification dated 11 August 2026. It was introduced in the Legislative Assembly of the National Capital Territory of Delhi on the same date. This is a proposed amendment, not an immediate compliance order. The attached document does not establish that the Bill has been passed, received assent, or come into force. Even if enacted, its commencement clause states that it would take effect only from a date separately appointed by the Government by notification in the Official Gazette. The proposal matters to building owners, occupiers, developers, architects, and compliance teams because it may change how the Delhi fire-safety statute refers to technical standards. It does not, however, say that fire-safety requirements, Fire Safety Certificates, or applicable building controls have been abolished. Bill at a Glance Particular Verified details Issuing authority Delhi Legislative Assembly Secretariat Document title The Delhi Fire Service (Amendment) Bill, 2026 Document type Bill as introduced and published for general information Principal legislation Delhi Fire Service Act, 2007 (Delhi Act 2 of 2009) Provision proposed to be amended Section 2, clause (i) Territorial jurisdiction National Capital Territory of Delhi Main proposal Replace "building bye-laws/National Building Code of India" with "building bye-laws" Effective date Replace "building bye-laws/National Building Code of India" with "building bye-laws" Compliance deadline Not expressly specified Transition period Not expressly specified New fee or financial threshold None introduced by the Bill Public expenditure Financial Memorandum states that no recurring or non-recurring expenditure is involved from the Consolidated Fund of the NCT of Delhi New delegated power None proposed Current legal character Legislative proposal, the materials reviewed do not establish enactment or commencement The Bill suggests amending the definition in the main Act. In and of itself, this Bill does not establish a new procedure for obtaining a Fire NOC, a new standard, a new submission deadline, or a punishment. Current Legal Status of the Bill The Bill identifies itself as having been introduced in the Delhi Legislative Assembly on 11 August 2026. Introduction is one of the early stages in the legislative process. A Bill generally does not become an Act simply through publication in the Gazette. The attached source does not provide evidence of: passage of the Bill by the Legislative Assembly, assent to the Bill, publication of a final Amendment Act, or A notification appointing its commencement date. Section 1(2) of the Bill is especially important. It says the proposed Act would come into force on a date appointed by the Government by notification in the Official Gazette. Therefore, even a later enactment would need to be read together with the commencement position. The official sources checked to prepare for this update could not provide any evidence of a subsequent Amendment Act or Commencement Notification. So it is better to consider the attached copy as a draft in the absence of any further official source of information. Businesses should not alter an existing fire-safety system, allow a certificate to lapse, or stop following an applicable standard solely because this Bill has been introduced. Existing Regulatory Framework The Delhi Fire Service Act, 2007 was enacted to provide for the maintenance of a fire service in Delhi and to strengthen fire-prevention and fire-safety measures in certain buildings and premises. The Statement of Objects and Reasons says that the Act received the President's assent on 17 January 2009. The principal legislation is identified as the Delhi Act 2 of 2009. The Act serves as the primary legislative enactment for such a purpose. The Delhi Fire Service Rules, 2010, prescribe further procedures and operational aspects. The building bye-laws regulate all building-related issues under the planning/building control system. The technical standards may also become applicable via the above-said Act, Rules, building bye-laws, sanctioned plans, approval conditions, etc. It is for this reason that the proposed amendment must be understood very carefully. Striking out an express reference in section 2(i) will not necessarily result in the elimination of every other means of making a standard applicable. The official document of the Delhi Fire Service, which contains the Delhi Fire Service (Amendment) Rules, 2025, makes clear that such Rules were made under section 63 of the Delhi Fire Service Act and came into force on 26 May 2026. The notification text still contains the definition of the National Building Code of India. This text changes some references from the year 2005 to the National Building Code of India, as amended from time to time. Why the Amendment Has Been Proposed The Statement of Objects and Reasons gives three connected reasons for the proposal. First, section 2(i) of the Delhi Fire Service Act specifically references the National Building Code of India. Because the reference appears in the statute, changing the position may require a legislative amendment. Second, the Bill proposes that, as part of a Government of India deregulation exercise, the reference to the National Building Code be omitted from the Delhi Fire Service Rules, 2010. The Bill therefore seeks a corresponding change in the principal Act to maintain consistency between the Act and the Rules. Third, the Government wants to avoid possible duplication or overlap in the framework governing fire prevention and fire safety in Delhi. According to the Bill, retaining only "building bye-laws" in section 2(i) would allow relevant requirements to be prescribed, modified, and updated through the applicable building bye-laws. The stated intention is to provide more flexibility when technical, administrative, or regulatory needs change. These are the reasons cited by the source. However, they must not be used to justify an inference that the Government seeks to lower fire safety standards, eliminate technical standards, or exempt buildings from current regulations. Nothing of the sort is mentioned in the Bill. Exact Amendment Proposed to Section 2(i) The Bill contains one substantive amendment. It proposes a substitution in section 2(i) of the Delhi Fire Service Act, 2007. Amendment element Existing wording identified in the Bill Proposed wording Nature of change Present position Reference in section 2(i) "building bye-laws/National Building Code of India" "building bye-laws" Removal of the express National Building Code reference while retaining building bye-laws Proposed, not established as effective by the attached source The proposal does not delete section 2(i) in its entirety. It substitutes one part of its wording. The direct legal effect, if the Bill is enacted and commenced in this form, would be the removal of the National Building Code of India from that particular statutory expression. This is a narrow but meaningful drafting change. Its wider effect will depend on the final enacted text, any related amendment to the Delhi Fire Service Rules, the applicable building bye-laws, and how other legal instruments refer to technical standards. What Would Change if the Bill Is Enacted? If enacted and brought into force in its present form, the Bill would make the following direct change: Section 2(i) would retain the reference to "building bye-laws". The express words "National Building Code of India" would be removed from that provision. The Act's wording would align with the future Rules position described in the Statement of Objects and Reasons, assuming the proposed omission in the Rules is also completed. Fire-prevention and fire-safety requirements could be updated through applicable building bye-laws without amending the principal Act every time the technical or regulatory position changes. The likely practical effect is a shift away from naming the National Building Code directly in section 2(i) and towards reliance on applicable building bye-laws for the relevant requirements. This is a likely regulatory implication, not proof that every building-by-law requirement will change immediately. The Bill does not reproduce any new technical requirement. It provides no revised values for exits, staircases, fire-fighting systems, access roads, alarms, sprinklers, hydrants, occupancy classifications, or building height. Businesses must therefore look to the rules and building controls that actually apply to their premises. What Would Remain Unchanged? The Bill is limited to one wording substitution. It does not expressly alter the wider purpose of the Delhi Fire Service Act or remove the need for fire prevention and fire safety in covered buildings and premises. The Bill does not explicitly establish or amend any of the following: A Fire Safety Certificate application process, Fire NOC or building permission process, inspection or audit process, testing requirement, new form or document requirements, reporting or record-keeping obligation, new government charge, new offense or punishment, renewal period, exception or relaxation, compliance deadline, or Transition provision for outstanding matters. This does not mean that these subjects are absent from the existing Act, Rules, building bye-laws, or other approvals. It means only that this Bill does not expressly amend them. Existing duties should continue to be assessed under the legal instruments presently in force. Effect on the National Building Code Reference The Bill removes an express statutory reference; it does not repeal or amend the National Building Code of India. Nor does it declare that the Code can never be relevant to a building in Delhi. The difference matters. A technical standard may be relevant because another law, rule, building bye-law, sanctioned plan, approval condition, tender, insurance condition, or contract incorporates it. Removing its name from one provision does not decide all those other questions. The official Delhi Fire Service amendment rules, notified on 26 May 2026, still contain references to the National Building Code. For example, they define the National Building Code of India as the Bureau of Indian Standards publication on fire and life safety, as amended from time to time. They also replace some references to the 2005 Code with a more general reference to the National Building Code of India. The August Bill, by contrast, proposes an omission from the Rules. The reasonable reading is that a further change to the Rules was contemplated; the Bill itself does not prove that the further change has already occurred. Until the complete final legal package is available, building owners and professionals should avoid treating the Bill as permission to depart from an approved fire-safety design or a standard incorporated elsewhere. Role of Building Bye-Laws After the Proposed Amendment The words "building bye-laws" would remain in section 2(i). The Statement of Objects and Reasons says the proposal would make it easier to prescribe, modify, and update fire-prevention and fire-safety requirements through the applicable building bye-laws. In practical terms, building bye-laws can link a building's use, height, floor area, access, occupancy, and design to the fire-safety measures required for it. The exact requirements cannot be derived from this Bill because it contains no technical schedule. If the amendment takes effect, businesses would still need to identify the bye-laws applicable to their building and project. The correct version may depend on the location, the approving authority, the date of sanction, the nature of the construction and occupancy, and any later amendments. Existing sanctioned plans and approval conditions would also need to be reviewed before any change is made. The proposal may make future technical updates easier because the principal Act would no longer need to be amended merely to change the named statutory reference. This flexibility is the stated policy benefit. It also means that compliance teams may need to monitor subordinate and local regulatory instruments more closely. Commencement and Effective-Date Position Stakeholder Immediate position Possible future effect Notification publishing the Bill for general information 11 August 2026 Makes the introduced Bill available, does not by itself prove enactment Introduction in the Legislative Assembly 11 August 2026 Starts legislative consideration Passage Not established by the materials reviewed Cannot be assumed Assent Not established by the materials reviewed Cannot be assumed Publication as an enacted Amendment Act Not established by the materials reviewed Cannot be assumed Commencement notification Not established by the materials reviewed Required under the proposed section 1(2) Compliance deadline Not expressly specified No new deadline should be invented The date 11 August 2026 is the date stated on the Legislative Assembly Secretariat notification and the date of introduction. It is not described in the Bill as the commencement date. The Statement of Objects and Reasons contains a blank date line. That blank should not be filled by assumption or treated as evidence of a different legal date. Impact on Businesses and Other Stakeholders Building owners and occupiers There is no immediate new filing duty in the Bill. Owners and occupiers should nevertheless track its progress because a final amendment, together with related Rules or by-law changes, may affect which document is used to identify applicable fire-safety standards. Existing fire-safety equipment, certificates, annual declarations, maintenance duties and approval conditions should continue to be managed under the law currently applicable to the premises. Developers, architects, and consultants The proposed change may increase the importance of checking the current building bye-laws and approval conditions at the design and sanction stage. Professionals should not rely only on the wording of the principal Act when determining technical requirements. Any design departure should be based on the final applicable legal framework and written approvals, not on an introduced Bill. Businesses operating from regulated premises Hotels, hospitals, commercial buildings, educational premises, industrial facilities, assembly buildings and other covered occupancies may have different fire-safety conditions. The Bill does not list or revise those categories. Each business should continue to comply with the requirements linked to its premises, sanctioned use, and existing Fire Safety Certificate. Compliance, legal and facility teams These teams should monitor four separate developments: final passage and text of the Bill, assent and publication of any Amendment Act, The commencement notification contemplated by the Bill, and  any further amendment to the Delhi Fire Service Rules or applicable building bye-laws. Treating these as separate checkpoints reduces the risk of acting too early or missing the date on which a final change becomes operative. Delhi Fire Service and implementing authorities The Bill's stated policy objective is to provide greater regulatory flexibility. If the proposal takes effect, authorities may be able to respond to technical or administrative developments through applicable building bye-laws without seeking a fresh amendment to the principal Act for every change in the referenced framework. Stakeholder Immediate position Possible future effect Recommended response Building owner or occupier No new duty created by this Bill alone Greater reliance on applicable building bye-laws Maintain current controls and monitor final notifications Developer or architect Existing approval framework continues Technical assessment may focus more closely on current bye-laws Verify the applicable version before design decisions Facility and compliance team No new deadline stated More monitoring of subordinate rules may be required Create a regulatory watch item Fire-safety professional Existing standards and approvals remain relevant Reference hierarchy may change Use the final enacted and notified framework Financial Implications of the Bill The Financial Memorandum states that the Bill does not involve any recurring or non-recurring expenditure from the Consolidated Fund of the National Capital Territory of Delhi. This means the proposal does not identify a new public expenditure burden under the Bill. It is not stated that every private enterprise impacted by the Memorandum would experience zero cost. There could be some indirect costs of adjustment if further modifications require legal, design, or professional input. Since the Bill provides no figures, there should be no calculation of any costs incurred for private compliance. Delegated Legislation Implications Delegated legislation refers to rules or regulations made under authority given by a parent law. The Memorandum regarding Delegated Legislation states that this Bill does not confer any new power on the Government or another authority to make rules or regulations. This does not mean that the Government has no existing rule-making power under the Delhi Fire Service Act. The official May 2026 amendment rules, for example, were notified under section 63 of the principal Act. The memorandum means that this particular Bill does not propose to create an additional rule-making power. Drafting and Source Observations Three points deserve careful attention. First, the date line below the Statement of Objects and Reasons is blank. The missing date should be reported as blank, not reconstructed. Second, the English amendment clause contains a quotation-mark and punctuation irregularity around the substituted words. The intended substitution is nevertheless clear when the Hindi and English text are read together. This appears to be a drafting or typesetting issue rather than a separate substantive provision. Third, the Bill says the reference to the National Building Code in the Delhi Fire Service Rules, 2010 "is proposed to be omitted." The official amendment rules notified on 26 May 2026 still contain and update references to the National Building Code. This suggests that the proposed omission mentioned in the Bill relates to a further regulatory step. That is an inference from the two official texts, a later Rules notification would be required to confirm completion of that step. What Businesses Should Do Next The Bill does not impose a new immediate compliance process. The sensible response is to monitor and verify. Confirm the legal status before acting. Check whether a final Amendment Act, assent record, and commencement notification have been issued. Maintain current fire-safety compliance. Do not cease equipment maintenance, record-keeping, certification, or approval conditions because of this suggested change to wording. Track related Rules changes. The Statement of Objects and Reasons refers to a proposed omission from the Delhi Fire Service Rules, 2010. Monitor the official Delhi Fire Service and Delhi Gazette for that separate action. Review the applicable building bye-laws. Developers, architects, and building owners should confirm which by-laws and amendments apply to the particular property. Check sanctioned plans and approval conditions. A Bill does not automatically change conditions attached to an existing plan, Fire Safety Certificate, or other approval. Document the legal basis for technical decisions. Keep a clear record of the Act, Rules, bye-laws, standards, and approval conditions relied upon. Obtain project-specific advice where necessary. Legal, architectural, and fire-safety professionals may need to review complex or high-risk premises. Priority Recommended action Responsible team Trigger or timing Purpose Immediate Keep existing fire-safety controls operational Facility and safety teams Ongoing Prevent premature relaxation High Monitor passage, assent, and commencement Legal or compliance team Until final status is confirmed Identify when the legal position changes High Monitor further Rules and by-law amendments Compliance and technical teams After any legislative development Identify the operative technical framework Project-specific Review sanctioned plans and approvals Architect, owner, and project team Before design or operational changes Avoid conflict with binding conditions As needed Obtain a professional applicability review Management and compliance team Where the position is unclear Support a defensible decision Legislative Process and What Happens Next The proposed Bill should undergo the appropriate legislative and authorisation procedures before it becomes effective as legislation. It is the process the measure must undergo that will determine the exact steps to follow. For business-monitoring purposes, the useful checkpoints are: whether the Assembly passes the Bill and whether its wording changes, whether the Bill receives the required assent, whether a final Amendment Act is officially published, whether the Government issues the commencement notification required by section 1(2), and whether related amendments are made to the Delhi Fire Service Rules or building bye-laws. No date for completing these steps is stated in the attached Bill. It would be inaccurate to predict when, or in what final form, the proposal will take effect. How Corpseed Can Help The proposed amendment is brief, but its connection with existing fire-safety rules, building bye-laws, sanctioned plans, and approvals may be difficult to understand. Corpseed provides property-specific fire safety compliance support to building owners, developers, occupiers, and businesses. Regulatory Applicability Assessment Ascertain whether the Delhi Fire Service’s standards apply to the structure itself or its usage. Separate the current legal obligations from the suggested modifications. Ascertain the jurisdiction and legislation to be referred to. Building Bye-Law Review Ascertaining pertinent building and fire-safety provisions. Reviewing approved plans and conditions. Determining any issues that need clarification. Fire NOC and Certificate Support Determine whether a Fire NOC or Fire Safety Certificate is required. Examine application forms and relevant documentation. Collaborate with architects, engineers, and fire safety experts. Assist with authority visits and in identifying gaps in documentation. Compliance Gap Assessment Review certificates, inspection reports, and maintenance history. Identify compliance gaps relative to relevant requirements. Support corrective-action planning and inspection readiness. Regulatory Monitoring Track the progress of the Bill in terms of its enactment, assent, and commencement. Watch out for any amendments to the Delhi Fire Service Rules and building bylaws. Advise firms on any verified amendments to the building bylaws. Corpseed assists business entities in understanding the process involved and preparing the right documentation. Building owners, builders, and tenants can seek help from Corpseed with fire safety compliance consultancy and building approval. Key Takeaways Amendment Bill 2026 relating to the Delhi Fire Service Act, 2007 aims to make a specific amendment to section 2(i) of the said Act, with the intent to delete any specific mention of the National Building Code, but keeping the building bye-laws intact, though the bill should not be considered an existing amendment. It is Bill No. 12 of 2026, introduced on 11 August 2026. It proposes to replace "building bye-laws/National Building Code of India" with "building bye-laws". The attached source does not establish passage, assent, or commencement. No effective date or compliance deadline for business has been fixed under this Bill. Cancellation of one statutory reference does not necessarily mean that all requirements relating to the National Building Code have been cancelled. Fire-safety certificates, approvals, and controls must not be relaxed just because the Bill is being introduced. The business must watch out for the Act and Rules/Building By-Law amendments coming into force.

Subject

Summary: MMDR Amendment Bill 2026: Major Mineral Tax Changes and Business Impact The Ministry of Mines has announced that the Mines and Minerals (Development and Regulation) Amendment Bill, 2026 was passed by both Houses of Parliament on 13 August 2026. According to the Ministry, the measure is intended to bring greater certainty, stability and predictability to the fiscal system governing major minerals. The proposal is important because mining businesses may face royalty, auction premium, dead rent, District Mineral Foundation contributions, Goods and Services Tax, transit fees and other State-level charges. Differences in these levies can affect project costs, auction bids and long-term investment decisions. However, the attached Press Information Bureau release is a policy announcement, not the final statutory text. Parliamentary passage should not be confused with commencement. The introduced Bill states that the amendment would take effect on a later date appointed by the Central Government through an Official Gazette notification. Businesses should therefore verify the final enacted text and commencement notification before treating the proposals as operational law. MMDR Amendment Bill 2026 at a Glance Particular Verified detail Issuing authority Ministry of Mines, Government of India Document type Press Information Bureau release Press release title MMDR Amendment to Bring Long-Term Stability in Major Minerals Sector Release ID 2299596 Date posted 14 August 2026 Parliamentary development Bill stated to have been passed by both Houses of Parliament Date passed by both Houses 13 August 2026 Governing legislation Mines and Minerals (Development and Regulation) Act, 1957 Mineral category principally discussed Major minerals Main stated objective Greater certainty, stability and predictability in the mineral-sector fiscal regime Effective date Not specified in the press release; the introduced Bill provides for commencement on a date separately notified by the Central Government Immediate business deadline Not expressly specified Source limitation The release does not reproduce the final Bill passed by Parliament, an assent notification or a commencement notification The announcement is therefore best understood as an important legislative development rather than a complete compliance notification. It indicates the direction of policy, but businesses need the final legal text and supporting rules to determine the exact effect on a particular mine, levy or transaction. Legal Status of the MMDR Amendment Bill, 2026 Passing a Bill through both Houses is a major stage in the legislative process, but it is not the same as bringing a law into force. The stages need to be kept separate: Passage by Parliament: Both Houses approve the Bill. The PIB release confirms this stage as of 13 August 2026. Presidential assent: The Bill becomes an Act after receiving the President's assent. Gazette publication: The enacted text is officially published and becomes available for authoritative review. Commencement: An Act may operate immediately or from a later date. The Bill as introduced says the Central Government will appoint the commencement date through an Official Gazette notification. Supporting rules: The introduced Bill leaves important details about conditions or restrictions on State levies to rules made by the Central Government. The official Bill available from Parliament is marked “As Introduced in Lok Sabha.” It is useful for understanding the proposal, but it should not be assumed that every word remained unchanged during passage unless the final passed or enacted text confirms this. The PIB release also does not state an assent date, Act number, Gazette number or commencement date. For this reason, mining companies should not stop paying a levy, revise a bid model or treat a past tax demand as invalid only on the strength of the press release. Those decisions require the final law, its commencement provisions, the rules made under it and advice based on the facts of the particular case. The Existing MMDR Regulatory Framework The Mines and Minerals (Development and Regulation) Act, 1957, commonly called the MMDR Act, provides the main Central framework for regulating mines and developing minerals in India. It deals with matters such as mineral concessions, leases, auctions, royalty and the rule-making powers of the Central Government. The Act operates alongside State laws, rules, land arrangements and fiscal measures. Mining projects may therefore encounter several payments and regulatory requirements at the Central and State levels. The exact position depends on the mineral, the land, the concession, the State and the nature of the payment. The press release states that the amendment is aimed at major minerals. It separately says that the States' power to regulate and impose tax on minor minerals will not be affected. This distinction matters because minor minerals are subject to a substantial State-level regulatory role, while the current proposal focuses on the wider fiscal framework for mineral rights and mineral-bearing land associated with major minerals. The Ministry also refers to the auction regime introduced in 2015. Under this system, a successful bidder may pay an auction premium in addition to other statutory payments. According to the Ministry, auction premium has become a substantial source of revenue for major mining States. Why the Amendment Was Proposed? The Ministry's central argument is that mining needs a stable and reasonably predictable fiscal environment. Mines require large investment, long development periods and careful assessment of mineral quality, extraction cost, logistics, regulatory payments and market prices. A new or unexpected levy can alter the financial assumptions on which an auction bid or investment decision was based. The Statement of Objects and Reasons accompanying the Bill as introduced identifies several concerns: A heavy cumulative tax burden on the mineral sector Introduction of taxes, cesses or other levies after mining has begun Multiple levies connected with production or dispatch Different rates across States Retrospective imposition of taxes or levies Higher compliance costs and cascading financial effects Greater pressure on small and medium mining operators The possibility that domestic minerals become less competitive than imported material These are the Government's stated reasons for the proposal. They should not be read as proof that every State levy is excessive or that all differences between States are harmful. State governments also depend on mineral-related revenue and have their own economic, environmental and local-development responsibilities. The intended policy result is a more uniform and balanced system. The Ministry connects this objective with investment, domestic mineral production, Atmanirbhar Bharat and the long-term vision of Viksit Bharat 2047. These are expected outcomes rather than guaranteed results. What the Introduced Bill Proposes to Change? The Bill introduced in the Lok Sabha contains five operative clauses. Subject to verification against the final enacted text, the proposal has four main legal components. 1. Bringing mineral-bearing land within the declaration of Union control Clause 2 proposes to amend Section 2 of the MMDR Act. The existing declaration concerning Union control over the regulation of mines and development of minerals would be expanded by adding a reference to the regulation of mineral-bearing lands. This is legally important because the proposed tax framework is not limited to a mine or mineral right in a narrow sense. It also addresses land that contains minerals meeting prescribed parameters. 2. Defining “mineral bearing land” Clause 3 proposes a new clause (ada) in Section 3. Under the introduced text, “mineral bearing land” means land having mineral contents in accordance with parameters prescribed under Section 5(2)(a) of the MMDR Act. The practical reach of this definition may depend on the prescribed parameters and how they apply to a particular parcel of land. Businesses should avoid assuming that every parcel suspected of containing minerals will automatically fall within the definition. 3. Introducing proposed Section 9D Clause 4 proposes a new Section 9D. The introduced text says a State Government may not impose a tax, cess or similar levy on mineral rights or mineral-bearing land, whether calculated by mineral quantity, mineral value, royalty payable or otherwise, except in accordance with conditions or restrictions prescribed by the Central Government. This does not mean that the introduced Bill sets out a complete tax ceiling or uniform rate. The detailed conditions and restrictions would be prescribed later. Until those rules are available, businesses cannot determine the full operational effect solely from the Bill or press release. 4. Treatment of earlier levies Proposed Section 9D (2), in the introduced Bill, addresses specified taxes, cesses or levies that were not deposited with or recovered by a State Government before commencement of the amendment. The text proposes that such amounts would be treated as invalid at all material times. At the same time, the proviso says an amount already deposited with or recovered by the State before commencement would not be refundable. The distinction between an unpaid demand and an amount already collected could therefore be highly important. No business should apply this provision to an existing dispute without checking the final enacted wording, the commencement date, the nature of the levy, payment history and applicable court or departmental proceedings. 5. Central rule-making power Clause 5 proposes an amendment to Section 13 of the MMDR Act. It would authorise the Central Government to prescribe the conditions or restrictions that govern State taxes, cesses or similar levies covered by proposed Section 9D. The rules will be central to practical implementation. They may determine the permitted structure, limits or conditions for covered levies. The introduced Bill itself does not supplies those details. Major Minerals and Minor Minerals: Why the Difference Matters The PIB release expressly says the amendment will not affect the States' power to regulate and impose tax on minor minerals. This assurance is important because the announcement focuses on long-term fiscal stability in the major-minerals sector. Businesses must first identify the mineral category relevant to their operations. A levy associated with a major mineral should not automatically be analysed in the same way as a levy on a minor mineral. The applicable concession rules, State rules, approvals and payment structure may differ. The attached release does not provide an exhaustive list of major and minor minerals. It also does not explain how mixed-mineral operations or land containing more than one mineral category will be treated. These questions require the governing notifications, State rules and project facts. What the Amendment Means for State Governments? The Ministry says the amendment will not take away State rights over land and minerals or any tax on minerals already collected by the States. It also says the existing arrangement under which approximately 90% of total mining taxes and statutory payments accrue to States will continue. The introduced Bill, however, proposes that future imposition of covered taxes, cesses and other levies on mineral rights or mineral-bearing land must follow conditions or restrictions prescribed by the Central Government. This creates an important balance: States would continue to receive royalty, auction premium and other mineral-related revenue. Amounts already collected before commencement would not be refundable under the introduced text. Covered levies would operate within a Central framework once the relevant conditions or restrictions are prescribed. State power concerning minor minerals would remain unaffected according to the press release. The final impact on State fiscal flexibility cannot be measured until the enacted provision and implementing rules are available. The rules will show how broad or narrow the restrictions are and how they interact with existing State measures. Existing Mining Taxes, Charges and Statutory Payments The press release says States currently levy around 14 types of taxes, charges, fees and other payments on mining operations. It gives several examples. Royalty: A statutory payment linked to the extraction or removal of minerals under the applicable legal framework. Auction premium: The amount quoted by the successful bidder in a mineral-block auction, payable according to the auction and concession terms. Dead rent: A minimum payment associated with a mining lease, subject to the governing law and lease conditions. District Mineral Foundation contribution: A payment intended to support people and areas affected by mining-related operations. Goods and Services Tax: An indirect tax that may apply to relevant supplies and payments in accordance with GST law. Transit fee: A charge that may arise in connection with movement or transport of minerals under the applicable State framework. The release also uses “etc.” and therefore does not provide a complete list of all 14 categories. It does not say that every listed payment will be capped, removed or altered. The treatment of each payment must be tested against the final scope of the law and the rules prescribed under it. Centre-State Mining Revenue Distribution The Ministry uses financial data to support its position that State revenue will remain substantial after the amendment. Financial indicator Relevant period Figure stated by the Ministry What it indicates Mineral imports FY 2025-26 ₹10,12,529 crore The scale of India's dependence on imported minerals cited in the release Revenue accruing to major mining States FY 2015-16 to FY 2025-26 More than ₹5 lakh crore The large share of mining-linked receipts accruing to States Revenue accruing to the Centre FY 2015-16 to FY 2025-26 ₹82,000 crore The Centre's stated receipts over the same period Auction premium collected by major mining States FY 2020-21 to FY 2025-26 More than ₹96,000 crore   The growing importance of auction premium as a State revenue source The release further says around 90% of total taxes and statutory payments in mining accrue to States. These are Ministry figures reproduced from the announcement. The release does not provide the underlying dataset, State-wise breakdown or a method for reconciling every figure. The data should therefore be used to explain the Government's policy position, not to estimate the tax liability or revenue contribution of a particular project. Role of the Mining Auction Regime The Ministry states that the auction regime introduced in 2015 gave States another major source of mining revenue. An auction premium is the amount offered by the successful bidder under the auction framework. It is separate from payments such as royalty, District Mineral Foundation contribution and applicable taxes. According to the release, major mining States collected more than ₹96,000 crore as auction premium from FY 2020-21 to FY 2025-26. It also says States that took the lead in auctioning and operationalising blocks experienced a sharp rise in revenue. The figures do not mean that an auction premium is the same for every block or mineral. Bid economics depend on expected mineral resources, grade, mine life, development requirements, infrastructure, statutory payments, operating cost and market conditions. Greater fiscal predictability may help bidders model these factors, but it does not remove geological or commercial risk. Why Fiscal Stability Matters for Mining Businesses Mining projects are normally planned over long periods. A bidder must estimate not only the cost of extracting minerals but also the combined effect of royalty, premium, taxes, contributions, logistics and compliance requirements. If a new levy is introduced after an investment decision, the project's expected return can change. The proposed framework may affect businesses in several ways: Bid valuation: Prospective bidders may gain more confidence if the treatment of future levies becomes clearer. Project financing: Lenders and investors may be able to assess fiscal risk more consistently across States. Operating cost: Conditions or limits on covered levies may influence the cost of mineral production, but the actual effect will depend on the final rules. Contracts: Change-in-law and tax-allocation clauses may need review after commencement. Disputes: The treatment of unpaid and already collected levies may become important in pending demands or litigation. MSME impact: Smaller mining operators may benefit from predictability, although transition and advisory costs may still arise. These are likely business implications, not confirmed outcomes. A company should assess them against its specific mineral, State, lease, payment history and contractual position. Potential Effect on Mineral Imports and Domestic Production The release reports that India imported minerals worth ₹10,12,529 crore during FY 2025-26. The Ministry argues that unbalanced State taxes can make domestic minerals more expensive and may encourage avoidable imports even where local reserves are available. The proposed amendment seeks to address one part of that problem by promoting a more predictable fiscal framework. If covered levies become more balanced, domestic suppliers may be better placed to plan production and offer competitive prices. Mineral-dependent manufacturers may also gain clearer visibility into input costs. This outcome is not automatic. Imports also depend on mineral availability, grade, technology, logistics, global prices, trade policy, processing capacity and buyer requirements. Fiscal reform alone cannot guarantee lower imports or higher domestic output. National Mineral Strategy and a More Uniform Market Mineral resources are finite and concentrated in a limited number of States. The Ministry therefore argues that their management requires a national approach that supports sustainable, equitable and reasonably uniform economic development. From the Ministry's perspective, wide differences in State levies can fragment the domestic market. A business may prefer material from another State or another country if the combined local fiscal burden makes domestic supply uneconomic. This can also increase transport distance, cost and environmental pressure. At the same time, uniformity should not be understood as removing the role of States. Mining has direct local effects on land, infrastructure, communities and the environment. State revenue remains important for administration and development in mining areas. The practical challenge is to combine national predictability with legitimate State and local interests. Potential Benefits and Implementation Concerns Potential benefits Greater visibility into the fiscal framework for major-mineral projects More consistent assumptions in auction bids and investment models Lower exposure to unexpected or retrospective levies, depending on the final law Better comparison of mining opportunities across States Possible improvement in the competitiveness of domestic minerals A clearer basis for long-term project financing and contracting Implementation concerns The exact conditions or restrictions on State levies are not contained in the introduced Bill. Final rules will determine how much practical uniformity the framework creates. Existing State laws and demands may require detailed transition analysis. The distinction between amounts recovered, deposited, demanded or disputed may be legally important. The final passed text may differ from the Bill as introduced. Businesses need clarity on assent, commencement and the treatment of ongoing proceedings. State fiscal interests must be considered alongside national investment objectives. The policy objective is understandable, but the quality of implementation will depend on clear rules, careful transition provisions and coordination between the Centre and States. Is This a Balanced Reform or an Additional Burden? For mining companies, a predictable fiscal system is generally easier to plan for than a collection of uncertain or retrospective levies. If the final framework clearly defines what States may impose, businesses may be able to prepare bids and investment models with fewer unknowns. For State governments, the concern is different. Mineral-related payments form a substantial revenue stream. Any Central restrictions must therefore be designed carefully so that fiscal predictability does not create avoidable uncertainty about legitimate State receipts. The introduced Bill attempts to balance these concerns by preserving amounts collected before commencement while enabling Central conditions or restrictions for covered levies. Whether that balance works in practice will depend on the final text and rules. At this stage, it is more accurate to call the proposal a major fiscal-coordination measure than to label it entirely beneficial or burdensome. What the Available Sources Do Not Specify The press release and introduced Bill leave several operational questions unanswered: Whether Presidential assent has been given The final Act number and final enacted wording The Gazette publication details of the enacted amendment The notified commencement dates The final conditions or restrictions on State levies Any permitted rate, ceiling or calculation method A complete list of covered and excluded State payments Detailed treatment of existing demands and pending proceedings Transition or administrative procedures Required filings or declarations, if any A business-specific compliance deadline A penalty created specifically for non-compliance with the proposed fiscal framework These gaps are material. They prevent a responsible adviser from giving a complete project-level conclusion based only on the press release. What Mining Businesses Should Monitor Next Verify the enacted text.  Obtain the official Gazette copy after Presidential assent and compare it with the Bill as introduced. Identify the commencement date. Do not assume that passage, assent and commencement occur on the same date. Review the Central rules. These rules should provide the conditions or restrictions that make the proposed Section 9D operational. Map existing State levies. List every tax, cess, fee and other charge applicable to each project and identify its legal basis. Separate paid and unpaid amounts. This distinction may be important under the proposed treatment of pre-commencement levies. Review pending disputes. Tax notices, appeals and court cases should be examined against the final law. Revisit bid and financing models. Update assumptions only when the enacted framework and rules are clear. Check major-versus-minor classification. The press release says State power regarding minor minerals will remain unaffected. Review contracts. Examine change-in-law, tax pass-through, price-adjustment and indemnity clauses. Maintain an audit trail. Record the legal sources and assumptions used for each commercial decision. These are prudent review measures. They are not statutory steps or deadlines created by the press release. Impact on Businesses Stakeholder Likely immediate impact Longer-term consideration Priority action Mining companies and leaseholders Need to monitor the final legal position Longer-term consideration Map all current payments and their legal basis Prospective auction bidders Greater attention to fiscal assumptions Potentially more predictable bid modelling Add legal-status conditions to bid review Investors and lenders Greater attention to fiscal assumptions Possible improvement in long-term visibility Review financial models after rules are issued Mineral-dependent manufacturers No direct duty stated in the release Possible improvement in long-term visibility Monitor supplier and contract implications MSME mining operators Need for legal and accounting review Predictability may help, but transition costs may arise Prioritise high-value levies and disputes Legal, tax and compliance teams Increased monitoring workload Need for a coordinated Centre-State compliance map Prioritise high-value levies and disputes State governments Need to assess the proposed Central framework Effect depends on final conditions and restrictions Review existing levies against the enacted law The immediate effect is mainly one of legal monitoring and risk assessment. The press release does not set a filing deadline or direct businesses to change current payments. What Businesses Should Do Next? Stakeholder Likely immediate impact Longer-term consideration Priority action Mining companies and leaseholders Need to monitor the final legal position Possible change in treatment of covered State levies Map all current payments and their legal basis Prospective auction bidders Greater attention to fiscal assumptions Potentially more predictable bid modelling Add legal-status conditions to bid review Investors and lenders Reassessment of regulatory and tax risk Possible improvement in long-term visibility Review financial models after rules are issued Mineral-dependent manufacturers No direct duty stated in the release Possible effect on domestic mineral prices and supply Monitor supplier and contract implications MSME mining operators Need for legal and accounting review Predictability may help, but transition costs may arise Prioritise high-value levies and disputes Legal, tax and compliance teams Increased monitoring workload Need for a coordinated Centre-State compliance map Create a verified source and issue tracker State governments Need to assess the proposed Central framework Effect depends on final conditions and restrictions Review existing levies against the enacted law Businesses should continue following the currently applicable law until an officially effective change supports a different position. How Corpseed Can Help? The MMDR Amendment Bill, 2026 involves the interaction of Central mining law, State levies, project economics and future rule-making. Corpseed's mining regulatory compliance services can support businesses in understanding how the final framework relates to a particular mineral, project and State. Corpseed can assist with: MMDR applicability and regulatory assessment Major-versus-minor mineral classification review Central and State mining-compliance mapping Inventory and legal-basis review of project-level levies Mining licence and approval coordination Mineral-block auction compliance review Regulatory due diligence for investors and lenders Compliance gap assessment Review of official notifications and implementation rules Ongoing mining regulatory monitoring The scope of support should be based on the final enacted law, applicable State framework and facts of the project. Corpseed does not guarantee allocation, approval, tax savings or a particular regulatory result. Mining companies, investors and mineral-dependent businesses may seek a project-specific review before changing tax treatment, bid assumptions or compliance controls under the proposed framework.

Subject

Summary: The State Pollution Control Board, Odisha , issued Public Notice No. 11208/IND-I-SWM-Misc-152(2025-26) on 23 July 2026 concerning compliance with the Environment Protection (End-of-Life Vehicles) Rules, 2025. The Odisha ELV EPR registration notice 2026 calls upon producers, Registered Vehicle Scrapping Facilities and bulk consumers operating in the state to register through the Central Pollution Control Board's centralised ELV Extended Producer Responsibility portal within three months. It also directs them to make a hard-copy submission to the Odisha Board. The notice is relevant to vehicle manufacturers, assemblers, sellers and importers that fall within the Rules' definition of “producer” registered vehicle scrapping facilities and fleet-owning bulk consumers. It also restates duties for registered vehicle owners, collection centres and automated testing stations. The central Rules were notified by the Ministry of Environment, Forest and Climate Change through S.O. 98(E) dated 6 January 2025 and came into force on 1 April 2025. The Odisha notice does not create the entire ELV framework afresh. It is a state-level compliance and enforcement communication requiring covered entities operating in Odisha to complete registration and follow the existing Rules. Particular Verified details Issuing authority State Pollution Control Board, Odisha, under the Department of Forest, Environment and Climate Change, Government of Odisha Document type Public notice and state-level compliance direction Date of issue 23 July 2026 Date of publication Not expressly specified in the notice the official file is hosted in the Odisha SPCB's July 2026 web directory Governing rules Environment Protection (End-of-Life Vehicles) Rules, 2025 Rules' effective date 1 April 2025 Main entities addressed Producers, Registered Vehicle Scrapping Facilities and bulk consumers operating in Odisha Core direction Register on the centralised online ELV EPR portal and submit a hard copy to the Odisha SPCB Time allowed by notice “Within 3 months” the starting point is not separately stated Indicative date if counted from notice date 23 October 2026, subject to confirmation from the Odisha SPCB Transition period No separate transition period is expressly specified in the notice Portal CPCB EPR ELV portal Enforcement warning Action considered appropriate, including environmental compensation, may be initiated for default under the applicable framework The issue date, the Rules' commencement date and the state registration direction are different dates. Businesses should not treat 23 July 2026 as the commencement of the national Rules those Rules have applied since 1 April 2025. The Regulatory Framework The Ministry of Environment, Forest and Climate Change made the Environment Protection (End-of-Life Vehicles) Rules, 2025 by exercising powers under the Environment (Protection) Act, 1986 and the Environment (Protection) Rules, 1986. The Rules establish an Extended Producer Responsibility system for vehicles and set duties for producers, registered owners, bulk consumers, Registered Vehicle Scrapping Facilities, collection centres, automated testing stations, CPCB, State Boards and state governments. The framework operates alongside the Motor Vehicles Act, 1988, the Central Motor Vehicles Rules, 1989 and the Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021. A vehicle becomes an End-of-Life Vehicle according to the vehicle-scrapping framework referred to in the 2025 Rules the Odisha notice does not create a separate definition. CPCB administers the centralised online system and registers producers. State Pollution Control Boards use the same portal to register RVSFs and bulk consumers and receive their returns. The Rules also connect environmental compliance with vehicle fitness testing, authorised scrapping, material recovery, hazardous-waste disposal and EPR certificates. The attached notice is therefore best classified as a public notice covering registration, reporting and enforcement under an existing national framework. It is not an amendment to S.O. 98(E), a new set of rules or an extension of the 1 April 2025 commencement date. Why This Was Implemented? The Odisha notification makes it quite clear that its objective is to notify the regulated parties and get them into compliance with the 2025 Rules. This objective is achieved through the following measures contained in the compliance mechanism: identification of obligated producers, fleet owners, and scrapping facilities transition of registration and returns to one centralized portal association of vehicle fitness data with ELV management channelling of ELVs to either Registered Vehicle Scrapping Facilities or collection points accounting of recovered steel and other material flows certification of extended producer responsibility target attainment using EPR certificates and allowing environmental compensation where specified non-compliance causes environmental or public-health harm. These are purposes of the verified regulatory framework. They should not be read as a claim that every operational outcome has already been achieved. Scope and Applicability The 2025 Rules apply to all types of vehicles covered under the definition of Section 2(28) of the Motor Vehicles Act, 1988, such as electric vehicles, battery-run vehicles, e-rickshaws, and e-carts. Agricultural tractors, agricultural trailers, combine harvesters, and power tillers. The Rules apply to producers, registered vehicle owners, bulk consumers, RVSFs, collection centres, automated testing stations, and entities involved in testing, handling, processing, and scrapping ELVs The Odisha notice's three-month registration direction specifically names producers, RVSFs and bulk consumers operating in Odisha. Stakeholder or product Covered? Relevant condition Main responsibility Producer Yes Manufactures or assembles and sells vehicles under its brand, sells under its brand vehicles made by others, or imports vehicles CPCB registration, EPR targets, annual return and other producer duties RVSF Yes Operates as a Registered Vehicle Scrapping Facility State Board registration, environmentally sound scrapping, records and quarterly returns Bulk consumer Yes Owns more than 100 vehicles, including a State transport undertaking State Board registration, timely ELV deposit and annual return Registered vehicle owner Yes Vehicle is registered in that person's name Fitness testing and ELV deposit within the prescribed period Collection centre Yes Receives or stores ELVs under the applicable framework Safe handling, transfer to RVSF and records Automated testing station Yes Declares vehicles unfit under the Central Motor Vehicles Rules Upload unfit-vehicle details to the portal Electric or battery-operated vehicle Yes Falls within the Rules' vehicle definition Subject to ELV framework, with specified waste streams governed separately Agricultural tractor, agricultural trailer, combine harvester or power tiller No Expressly excluded from the 2025 Rules Not covered by these Rules Waste batteries, plastic packaging, waste tyres, used oil and e-waste are carved out to the extent that their respective waste-management rules govern them. This does not remove the vehicle itself from ELV regulation it separates specified waste streams into their applicable regimes. Implementation Timeline and Compliance Calendar Event or requirement Date or frequency Affected entity Required action National notification issued 6 January 2025 All covered stakeholders Review S.O. 98(E) and determine applicability ELV Rules commenced 1 April 2025 All covered stakeholders Comply with the 2025 Rules Current-year EPR obligation declaration By 30 April each year Producer Declare current-year EPR obligation to CPCB Producer annual return By 30 June each year Producer File Form 1 for the previous financial year Bulk-consumer annual return On or before 30 June each year Bulk consumer File Form 2 for the previous financial year RVSF quarterly return By the 30th day of the month following the previous quarter RVSF File Form 3 and keep supporting records Odisha public notice issued 23 July 2026 Entities operating in Odisha Review registration and filing status State notice registration period Within three months Producers, RVSFs and bulk consumers in Odisha Complete portal registration and hard-copy submission Indicative three-month date 23 October 2026, if counted from 23 July 2026 Same entities Treat as a planning date and confirm with Odisha SPCB Deposit of an ELV Within 180 days from the date the vehicle becomes an ELV Registered owner or bulk consumer Deposit at an eligible sales outlet, collection centre or RVSF The key point that comes up in relation to Odisha specifically is that of three months. Since there is no separate mention of the date from which the period will commence, it would be better if the entities get a written clarification of the same. What Has Changed? The national obligations have existed since the Rules came into force on 1 April 2025. The main development is the Odisha Board's state-level direction calling for registration and a hard-copy submission within three months, backed by an enforcement warning. Compliance area Earlier governing position Odisha notice position Practical meaning Producer registration Producer applies in Form 4 to CPCB through the portal Producers operating in Odisha are told to register within three months Unregistered producers should regularise their status promptly RVSF registration RVSF applies in Form 5 to the State Board through the portal RVSFs operating in Odisha are told to register within three months Portal and state-level registration status should be checked Bulk-consumer registration Bulk consumer applies in Form 6 to the State Board through the portal Bulk consumers operating in Odisha are told to register within three months Fleet ownership must be assessed against the “more than 100 vehicles” threshold Physical submission Not detailed in the notice's summary of the central Rules Hard-copy submission to Odisha SPCB is directed The exact hard-copy contents and procedure require confirmation Enforcement The Rules allow registration action, inspection, audit and environmental compensation in specified cases Odisha SPCB warns that appropriate action may be initiated for default Evidence of registration, filings and operational compliance should be organised The notice should not be described as creating a new nationwide EPR regime or changing the national EPR target schedule. Who Must Register on the CPCB ELV EPR Portal? The Odisha notice names three categories: producers, Registered Vehicle Scrapping Facilities, and bulk consumers operating in Odisha. The Rules use one central portal but allocate the registering authority differently. Entity Application form under the Rules Registering authority Portal route Producer Form 4 Central Pollution Control Board Centralised online portal Registered Vehicle Scrapping Facility Form 5 Concerned State Pollution Control Board Centralised online portal Bulk consumer Form 6 Concerned State Pollution Control Board Centralised online portal A producer includes an entity that manufactures or assembles and sells vehicles under its own brand, sells under its brand vehicles produced by another manufacturer or supplier, or imports vehicles. A bulk consumer means a consumer owning more than 100 vehicles and includes a State transport undertaking. The Rules provide for issuance of registration certificates within 15 days of receipt of the application. Registration remains valid until suspended or cancelled. These provisions do not remove the need to answer portal objections or supply accurate information. State-Specific Registration Direction and Deadline The notification is to those obligated entities that have been “operating in the State of Odisha” and must register in three months. It does not provide any additional separate date for its final period and does not state anything about being “three months from the date of this notification.” For internal planning purposes, companies can take three months from 23 July 2026, making the tentative date 23 October 2026. As implied in the notice, when this period begins, the date needs to be confirmed with the Odisha SPCB. It would not be wise to postpone the overdue registration process. Hard-Copy Submission to the State Pollution Control Board The notice requires a hard-copy submission to the State Pollution Control Board, Odisha, in addition to portal registration. It does not expressly specify: whether the hard copy must contain the full application, portal acknowledgement, registration certificate or another record the supporting-document list whether producers and State Board registrants must submit different sets the physical submission address or permitted delivery method whether an acknowledgement will be issued or whether the hard copy must be submitted before, with or after portal approval. A safe approach is to obtain written procedural confirmation from the Board and retain proof of dispatch or receipt. Businesses should not rely on a generic document checklist that has not been issued for this notice. Stakeholder-Wise ELV Compliance Matrix Stakeholder Registration or portal duty Operational duty Return or record duty Deadline or frequency Main compliance risk Producer Register with CPCB in Form 4 Meet EPR targets use registered entities to support collection Form 1 annual return and current-year obligation declaration 30 June and 30 April respectively EPR shortfall or engagement with unregistered entities RVSF Register with State Board in Form 5 Depollute, dismantle, segregate, recover and route residues lawfully Form 3 quarterly return and material records 30th day of next month after each quarter Incomplete mass balance or unlawful downstream transfer Bulk consumer Register with State Board in Form 6 Test vehicles and deposit ELVs within 180 days Form 2 annual return On or before 30 June Threshold misclassification or retained ELVs Registered owner No ELV portal registration is required merely because of ownership Test and deposit ELV within 180 days Keep practical transfer evidence Vehicle-specific Retaining an ELV beyond permitted period Collection centre No separate portal-registration duty stated in this notice Collect, store safely and send ELVs to RVSF Receipt, transfer and handling records Ongoing Poor traceability or unsafe storage Automated testing station Upload unfit vehicle details Conduct functions under vehicle-testing framework Portal data As vehicles are declared unfit Missing or inaccurate uploads Responsibilities of Vehicle Owners Every registered owner and bulk consumer must ensure that the vehicle is tested in accordance with section 56 of the Motor Vehicles Act, 1988 and rule 52 of the Central Motor Vehicles Rules, 1989. Once the vehicle becomes an ELV under the referenced vehicle-scrapping framework, it must enter an authorised collection or scrapping route. The owner may deposit the ELV at a producer's designated sales outlet, a designated collection centre or an RVSF. The Rules do not require an ordinary registered owner to register on the ELV EPR portal merely because the person owns a vehicle. Responsibilities of Collection Centres Collection centres must collect and store ELVs, handle them in an environmentally sound manner and send them to an RVSF. They must keep records of ELVs received, ELVs sent to an RVSF and the manner in which those vehicles were handled. The Odisha notice does not create a separate collection-centre registration process. A collection centre should nevertheless verify its legal relationship with the producer or RVSF and maintain a clear vehicle-level chain of custody. Role of Automated Testing Stations An automated testing station must upload details of vehicles declared unfit under rule 182 of the Central Motor Vehicles Rules, 1989 to the centralised portal. Upload may occur directly or by linking the Central Government's electronic portal established under rule 181(1). This reporting function helps connect fitness outcomes with ELV compliance. It does not authorise the testing station to scrap vehicles unless the station separately holds the required status and approvals. Obligations of Bulk Consumers A bulk consumer owns more than 100 vehicles the threshold is not “100 or more.” State transport undertakings are included. A covered fleet owner must: obtain registration from the State Board through the centralised online portal ensure vehicles undergo the prescribed fitness testing deposit each ELV at an eligible destination within 180 days of it becoming an ELV avoid retaining the ELV beyond that period and file Form 2 on or before 30 June for the previous financial year. Form 2 seeks fleet and ELV information, including vehicles registered, specified age-related details, fit vehicles, unfit or end-of-life vehicles, and vehicles deposited for scrapping. Fleet data should therefore be reconciled before filing. Producer Extended Producer Responsibility and Scrapping Targets Producers must fulfil EPR for vehicles introduced in the domestic market, including vehicles put to self-use. They must meet category-specific scrapping targets in the Schedule and fulfil EPR through certificates generated by their own RVSF or another qualifying RVSF. For financial year 2025-26, the Schedule sets a minimum target of 8% of the steel used in non-transport vehicles placed in the market in 2005-06 and 8% of the steel used in transport vehicles placed in the market in 2010-11. For 2026-27, the minimum remains 8%, using 2006-07 as the base year for non-transport vehicles and 2011-12 for transport vehicles. Later years use the relevant historical base years and higher percentages according to the Schedule. Up to 30% of an annual target may be carried forward for compliance over the next four years. EPR target calculation under these Rules concerns steel scrapping. Batteries, waste tyres and used oil remain governed under their respective waste-management frameworks. Producers should not use that target basis to ignore other ELV material-handling duties. Producer Take-Back, Buy-Back, Deposit-Refund and Awareness Measures The Rules require producers to take measures that encourage safe ELV deposit. They may deploy a buy-back scheme, deposit-refund scheme or another arrangement and may designate a registered entity to help fulfil EPR. Producers must also arrange to receive ELVs through designated collection centres, including sales outlets publish the list on their website and at prominent places at sales and service centres provide the list to CPCB through the portal and conduct awareness campaigns. The Rules give flexibility in scheme design but do not make one named scheme the only permitted route. Annual Returns for Producers and Bulk Consumers Filer Form Recipient or portal route Frequency Due date Main information Producer Form 1 Centralised portal to CPCB Annual 30 June for previous financial year Vehicle numbers and types, steel weight, self-use vehicles and EPR fulfilment Bulk consumer Form 2 Centralised portal to State Board Annual On or before 30 June for the previous financial year Fleet details and ELVs deposited for scrapping The producer must separately declare the current year's EPR obligation by 30 April of the same year. Registration does not replace return filing, and a return does not cure a missing registration. Responsibilities of Registered Vehicle Scrapping Facilities An RVSF must receive unfit vehicles and ELVs and undertake treatment, depollution, dismantling, segregation and scrapping according to applicable law. It must register with the concerned State Board in Form 5 and maintain complete material and destination records. Environmentally Sound Depollution, Dismantling and Material Handling The Rules require treatment involving depollution and collection of liquids, gases, catalysts, mercury-containing parts, batteries and hazardous waste. They also require dismantling, segregation, safe storage of different waste categories in separate bins, and recycling or refurbishment of materials such as plastic, metals, tyres, catalytic converters, magnets, batteries and e-waste. Separate waste regimes continue to apply to specified materials. RVSFs should map each output stream to the correct authorised recipient and retain evidence of quantity and handover. Downstream Transfer to Recyclers, Refurbishers and Co-Processors Where the RVSF does not have its own recycling or refurbishing facility, recovered and segregated materials must be sent to registered recyclers or refurbishers or to co-processors for recycling and reuse. The facility should verify the status of each downstream party rather than rely only on a commercial invoice. Disposal of Hazardous and Non-Recyclable Residues Non-recyclable or non-refurbishable material and non-utilisable hazardous material must be sent to a Common Hazardous Waste Treatment, Storage and Disposal Facility authorised under the Hazardous and Other Wastes (Management and Transboundary Movement) Rules, 2016. The Odisha notice does not set storage periods, transport-document requirements or treatment charges. Those details must be determined from the applicable waste law, authorisations and official directions. Generation, Issuance, Exchange and Purchase of EPR Certificates Stage Responsible entity Verified basis or action Material recovery RVSF Process ELVs and account for steel and other materials Certificate generation basis RVSF data Weight of steel scrap generated, measured in kilograms Certificate issuance CPCB Weight of steel scrap generated, measured in kilograms Purchase Producer Purchase through the portal within current and carried obligations Adjustment Portal mechanism Apply certificates first to earlier obligations Reporting RVSF Record certificate transactions and include them in quarterly returns A used certificate cannot be exchanged again, and a certificate purchased by one producer cannot be transferred to another producer. Certificates generated by RVSFs are valid for five years. Generation is conditional on accounting for other ELV materials and environmentally sound disposal of non-recoverable or hazardous residues. Quarterly Returns for Registered Vehicle Scrapping Facilities An RVSF must file Form 3 on the centralised online portal to the State Board by the 30th day of the month following the previous quarter. The return covers the weight of ELVs received and category-wise material recycled, refurbished, transferred for recycling or refurbishment, processed, or sent to a Common Hazardous Waste Treatment, Storage and Disposal Facility. The facility must also keep supporting records. Portal figures should reconcile with vehicle receipts, weighment records, downstream acknowledgements, waste manifests where applicable, and EPR certificate transactions. Record-Keeping, Portal Reporting and Data Linkage Stakeholder Record or data Destination Timing Producer Market placement, steel weight, self-use vehicles, EPR fulfilment CPCB portal Annual and as obligation declarations require Bulk consumer Fleet, fitness status and ELVs deposited State Board through portal Annual RVSF ELV receipts, output weights, downstream transfers, disposal and certificates State Board through portal Quarterly and ongoing records Collection centre ELVs received, handled and sent to RVSF Internal record produce when required Ongoing Automated testing station Vehicles declared unfit Centralised portal directly or through linkage On declaration or system process Recommended internal controls include portal acknowledgement files, controlled spreadsheets or system records, due-date alerts, authorised-signatory review and periodic reconciliation. These controls support compliance but do not replace the forms prescribed by the Rules. Documents and Records Required Documents or records required are as follows: Form 4 registration application Form 5 registration application Form 6 registration application Form 1 annual return Form 2 annual return Form 3 quarterly return ELV receipt and transfer records Downstream handover records Portal acknowledgements and hard-copy receipt The exact hard-copy pack required by the Odisha notice is not expressly specified. Businesses should not assume this table is itself the Board's hard-copy checklist. Impact on Businesses Vehicle Producers and Importers Producers need clean historical data on vehicle placement and steel weight, a valid portal registration, current-year obligation declarations, annual returns, and enough eligible certificates to meet targets. Procurement and EHS teams must ensure that ELV partners are registered. Registered Vehicle Scrapping Facilities RVSFs face the most detailed operational burden. Vehicle receipt, depollution, material segregation, downstream transfer, hazardous-residue disposal, quarterly reporting, and certificate generation must form one reconcilable record trail. Bulk Consumers and Fleet Operators Fleet owners must first test whether they cross the “more than 100 vehicles” threshold. Covered fleets require State Board registration, vehicle-level fitness and ELV tracking, timely deposit, and an annual Form 2 return. Collection Centres and Testing Stations Collection centres need reliable receipt, storage and transfer controls. Automated testing stations need accurate portal uploads for vehicles declared unfit. Weak data at either point may affect the chain of custody downstream. Challenges and Cost Implications The notice does not prescribe fees or quote compliance costs. Likely cost drivers include portal preparation, historical data cleansing, weighment and material records, authorised downstream services, safe storage, staff time, audit readiness and professional support where needed. Short-term challenges may include identifying the correct entity category, resolving portal data gaps, compiling hard-copy records and reconciling past returns. Ongoing burden will centre on vehicle and material traceability, timely filings and vendor verification. MSMEs operating RVSFs may feel these system and staffing costs more sharply, though the legal duties do not disappear because an entity is small. Benefits for Businesses Effective compliance can provide practical benefits without guaranteeing a commercial outcome: clearer chain of custody for retired vehicles lower risk of dealing with informal or unregistered scrapping channels better material and hazardous-waste accountability stronger audit evidence orderly EPR certificate generation and purchase better fleet retirement data and improved coordination across legal, EHS, operations, procurement and finance teams. Is This a Right Decision or Additional Burden? The direction supports an established environmental objective: ELVs should enter traceable facilities capable of depollution, recovery, and safe residue disposal. Central portal data can help regulators compare vehicle intake, recovered material, returns, and producer obligations. The additional state-level hard-copy direction creates an administrative burden, especially because the required contents and process are not stated. A clear checklist, filing channel, and unambiguous final date would reduce avoidable uncertainty. On balance, registration enforcement is consistent with the Rules, while procedural clarification would make implementation more practical. Business Opportunities Created The framework can create legitimate demand for authorised scrapping capacity, collection networks, material recovery, recycling, refurbishment, hazardous-waste services, compliance systems, portal support and independent record review. Producers may also need better vehicle and steel-data architecture to forecast obligations. These are likely commercial implications, not assured revenue projections. Entry into any activity remains subject to the applicable registration, authorisation, technical and environmental requirements. Business and Regulatory Perspective From a regulatory perspective, registration makes the obligated population visible and enables inspections, returns and EPR certificate controls. From a business perspective, the harder task is not clicking “register” it is building data and operating controls that remain consistent across the portal, physical records and actual ELV movement. The notice therefore deserves attention even from an entity that has already started registration. Businesses should verify whether the registration is active, whether the correct authority is reflected, whether returns are current, and whether the Odisha hard-copy direction has been met. Common Mistakes or Risks to Avoid Treating every owner of 100 vehicles as a bulk consumer when the definition says more than 100. Counting the 180 days from the Odisha notice rather than from the date a vehicle becomes an ELV. Assuming producer registration with CPCB removes the Odisha hard-copy direction. Filing a registration application but overlooking annual or quarterly returns. Using an unregistered entity for ELV scrapping or EPR fulfilment. Treating recovered steel as the only waste stream requiring control. Reporting certificate quantities that do not reconcile with steel recovery and other material records. Inventing a hard-copy document pack instead of obtaining official clarification. Practical Readiness Plan for Producers, RVSFs and Bulk Consumers Conduct an applicability review. Make sure the legal entity, function, vehicle type, fleet size, and Odisha operation linkages are accurate. Verify registration validity. Ensure that there is registration reflected on the portal and whether objections are still pending. Respond to Odisha filing. Get the checklist from the Board in the original and physical copy and file it. Resolve return loopholes. Conduct a review of Form 1, Form 2, or Form 3 filing and current year declarations by the producers. Align operational proof. Align vehicles, dates, weights, destination of materials, and certificates. Audit vendor controls. Ensure that the scrapping and downstream entities have the requisite status for the activity. Get ready for consideration. Have all your registrations, returns, acknowledgements, and operating proof in place. How Can Corpseed Help? Corpseed can support affected businesses with ELV EPR registration services and related compliance work based on the entity's actual role and records. ELV Rules applicability assessment for producers, importers, RVSFs and fleet operators CPCB ELV EPR portal registration support Form 4, Form 5 and Form 6 application-document review Odisha SPCB hard-copy submission coordination after procedural confirmation Form 1, Form 2 and Form 3 filing support ELV compliance-gap and record-traceability assessment EPR certificate and registered-vendor document review Ongoing environmental compliance calendar and audit-readiness support The scope should be fixed after checking the entity category, registration status, portal records, and outstanding filings. Corpseed assists with preparation and coordination but cannot guarantee registration, certificate issuance, regulatory acceptance, or a fixed authority timeline. Businesses covered by the Odisha notice may contact Corpseed for an applicability and filing-status review before completing the portal and physical-submission process.

Subject

Summary: The Ministry of New and Renewable Energy has invited comments from stakeholders on the draft revised specifications for solar pump controllers. The invitation was issued by its Standards and Quality Control Division through Office Memorandum File No. 313-12/2/2026-S&QC, dated 12 August 2026. The draft, prepared by the National Institute of Solar Energy (NISE), proposes detailed performance, safety, testing, and environmental requirements for solar photovoltaic water-pumping controllers. It also introduces a wider role for these controllers by covering multifunction applications, battery storage and grid-interactive operation. According to the office memorandum, comments may be submitted by 28 August 2026. This is a consultation deadline, not a deadline for complying with the proposed technical requirements. The proposal may be particularly relevant to solar pump controller manufacturers, PM-KUSUM vendors, system integrators, component suppliers, battery-system developers, testing laboratories, state implementing agencies and businesses involved in agricultural solar-energy equipment. Draft Specification at a Glance Particular Verified details Issuing authority Ministry of New and Renewable Energy, Standards and Quality Control Division Technical draft prepared by National Institute of Solar Energy Document type Office memorandum inviting comments, accompanied by draft revised technical specifications File number 313-12/2/2026-S&QC Date of issue 12 August 2026 Legal status Draft issued for stakeholder consultation Effective date Not expressly specified Consultation deadline in office memorandum 28 August 2026 Compliance deadline Not applicable at the draft-consultation stage Proposed standard title Solar Photovoltaic Water Pumping Controllers - Performance, Safety and Test Requirements Maximum covered PV input voltage Up to 1,000 V DC Applications covered Agricultural, potable-water, community-water and industrial solar pumping applications Controller modes covered Off-grid, off-grid with storage, multifunction, grid-feeding and grid-interactive Supported motor technologies Induction, PMSM and BLDC motors Main stakeholders Manufacturers, system integrators, testing laboratories, PM-KUSUM vendors and implementing agencies Main development Proposed standardisation of controller safety, efficiency, interoperability, monitoring and testing Fees or penalties Not expressly specified The official MNRE notice confirms that the Ministry has invited comments on the draft. However, the webpage displays an “End Date” of 11 October 2026, while the attached office memorandum expressly asks stakeholders to submit comments by 28 August 2026. Unless MNRE issues a clarification, stakeholders should work with the earlier date stated in the signed office memorandum. Draft Status and Legal Effect These are only proposed requirements at this point. The draft is still open for consultation and does not create any new compliance obligation yet. The draft repeatedly uses expressions such as “shall,” “should” and “may.” These expressions describe how the proposed framework is intended to operate if it is finalised. They do not, by themselves, make the draft legally binding during the consultation stage. The document does not expressly specify: A final adoption date An effective date A transition period A certification commencement date A list of recognised testing laboratories A product-registration process Government fees Enforcement provisions Penalties for non-compliance Treatment of controllers already manufactured, tested or deployed These matters may need to be addressed when MNRE finalises the specification or incorporates it into PM-KUSUM guidelines, procurement documents, quality-control requirements or another binding instrument. Regulatory and Standards Framework The proposal is connected with the technical framework for solar photovoltaic water pumping systems deployed under MNRE programmes, including PM-KUSUM. Existing MNRE specifications for solar photovoltaic water pumping systems already address matters such as controller capacity, MPPT, enclosure protection, remote monitoring and pump-system safeguards. The new draft focuses specifically on solar pump controllers and proposes a more detailed framework for controller performance, safety, environmental resistance, power quality and testing. Normative references The draft identifies the following as normative references, meaning that their relevant provisions are intended to form part of the proposed technical requirements: IS 17018-1 - Solar photovoltaic water pumping systems and centrifugal pumps IS 16221 Part 1 - Safety of power converters used in photovoltaic power systems IS 16221 Part 2 - Safety of power converters used in grid-connected photovoltaic systems IS 16169 - Procedure for islanding-prevention measures IEC 60990:1999 - Touch-current measurement IEC 60529 - Degrees of protection provided by enclosures IS/IEC 61683 - Efficiency measurement of PV power conditioners IEC 62116 - Test procedure for islanding-prevention measures IEC 60068 series - Environmental testing IS 3043 - Code of practice for earthing The draft states that the latest editions of these standards would apply. Informative references The draft separately classifies the following as informative references: MNRE technical specifications for solar water pumping systems IEC 61000-4-7 concerning harmonics and interharmonics measurements IEC 61000-3-2 concerning harmonic-current emission limits An informative reference is included to provide additional context or guidance. It does not, by itself, create a separate requirement that businesses must follow unless the final document specifically makes it mandatory. Scope and Applicability The draft applies to solar photovoltaic water pumping controllers intended for: Off-grid solar pumping Off-grid pumping with battery storage Multifunction operation Grid-feeding operation Grid-interactive pumping systems It covers controllers used for: Agricultural irrigation Potable-water supply Community-water systems Industrial solar pumping The proposed scope extends to controllers with: PV input voltage up to 1,000 V DC Single-phase or three-phase output Compatibility with induction motors Compatibility with permanent magnet synchronous motors Compatibility with brushless DC motors The proposal is therefore wider than a controller specification limited to agricultural irrigation. It could influence product design for community water, rural-energy, industrial pumping and multifunction farm-energy systems. Proposed Controller Configurations The proposed configurations cover different operating needs, from basic solar pumping to battery-backed systems and grid-connected applications: Standard solar pumping controller The core controller converts DC electricity from a solar PV array into an electrical output suitable for operating a pump motor. It is also expected to perform control, protection, MPPT and monitoring functions. Off-grid multifunction controller without storage Annexure I proposes an off-grid multifunction controller that can use solar power for pumping and other agricultural or household applications without a dedicated battery. The proposed configuration contains four outputs: A three-phase output dedicated to agricultural pumps or motors A three-phase variable-voltage and variable-frequency output for other agricultural equipment A single-phase variable-voltage and variable-frequency output for agricultural machinery A fixed-voltage, fixed-frequency single-phase output for household loads The annexure describes two three-phase outputs rated at 400 V and two single-phase outputs rated at 220 V, 50 Hz. Although the annexure refers to four independent outputs, the main body states that only one selected load should operate at a time. The controller interface must provide load selection and electrical and operational interlocking between the outputs. Off-grid multifunction controller with battery storage The draft permits a dedicated battery energy storage system to be integrated with the controller. The proposed battery bank would connect to the DC bus through a Dual Active Bridge converter. This arrangement allows electricity to flow in both directions between the battery and the controller. A storage-enabled system could: Continue supplying power during low solar irradiance Support loads outside sunshine hours Respond to temporary load variations Store surplus solar electricity Improve the reliability of irrigation and agricultural operations Support selected household or critical rural loads For functional verification, the solar PV array, controller, battery bank and DAB converter would be tested as an integrated system. For performance evaluation, the proposal requires separate assessment in solar-only, and battery-only modes. Hybrid controller with grid import and export The draft also describes a hybrid multifunction controller capable of interacting with the utility grid. Depending on the applicable regulatory framework, such a controller could: Export surplus solar electricity to the grid Import grid electricity when solar and battery power are insufficient Manage electricity among the PV system, battery, grid, agricultural loads and household loads Prioritise power sources for critical loads Operate through net-metering or behind-the-meter arrangements The proposal does not create an automatic right to export electricity. Grid export, net metering and interconnection would remain subject to applicable electricity regulations, distribution-company requirements, state rules and grid codes. Proposed Rating, Capacity and Marking Requirements The proposed requirements set clear expectations for the controller’s performance, identification, safety markings and operating conditions: 1. Controller rating The manufacturer would be required to declare the controller’s rated power. The proposed controller rating must be equal to or greater than the peak power of the connected PV array, as specified for the relevant water pumping system under MNRE specifications and IS 17018-1. The controller would also have to deliver its marked output power or rated current continuously for at least two hours while operating the pump at peak rated voltage and frequency. During this test, it should not: Trip an overcurrent-protection device Shut down due to over-temperature protection Fail to deliver the declared output 2. Rating plate and permanent markings The controller would require a permanent, weatherproof rating plate. The draft proposes: Minimum text height of 3 mm Minimum safety-symbol size of 10 mm Etched or embossed markings Markings that remain legible through the equipment’s service life The rating plate would include: Manufacturer’s name or trademark Model number Serial number Month and year of manufacture Maximum PV input voltage Maximum PV short-circuit current Maximum permissible PV array power MPPT voltage range Maximum current per MPPT input, where applicable Number of MPPT inputs, where applicable Motor output-voltage range Rated motor power Rated output current Supported motor type The draft further identifies the controller as: Overvoltage Category III Pollution Degree 3 IP65 or higher Equipment Class I Suitable for an ambient-temperature range of 0°C to 50°C Proposed safety markings include warnings relating to PV disconnection, protective earthing, hot surfaces and hazardous DC voltage. Wider PV Input-Voltage Operation The draft places considerable emphasis on wider input-voltage operation. This is intended to make controllers more adaptable to changes in PV module size, rating, voltage and efficiency. Manufacturers would declare minimum, nominal and maximum input-voltage values. Testing would then be conducted at: Minimum declared voltage Nominal voltage At least 90% of the maximum declared voltage For all motor-pump sets, the controller would have to operate at: Nominal voltage minus 15% Nominal voltage Nominal voltage plus 15% The controller would be expected to deliver rated power at each of these three voltage levels. The draft also proposes that the controller should continue operating where one PV module is added or removed, including variations associated with bypass-diode activation. Controllers rated at 10 kVA or above would require multi-channel MPPT to reduce array mismatch losses and improve energy harvesting. Proposed Efficiency Requirements Efficiency is where a solar controller proves its real value. The proposed requirements focus on reducing power losses, improving MPPT performance and making sure more of the available solar energy reaches the connected load. Power-conversion efficiency At or above 80% of rated PV power under standard test conditions, the draft proposes the following minimum conversion efficiency: Controller capacity Minimum conversion efficiency Below 5 kVA or 5 HP 93% 5 kVA or 5 HP and above 94% These limits would apply regardless of whether the controller uses a single-stage or two-stage design. Static MPPT efficiency Static MPPT efficiency measures how effectively a controller extracts available PV power under stable operating conditions. The draft proposes a minimum static MPPT efficiency of 98% across 10% to 100% of rated PV input power. Dynamic MPPT efficiency Dynamic MPPT efficiency measures performance while solar irradiance is changing. The draft proposes a minimum dynamic MPPT efficiency of 97% under hot-day and cold-day profiles specified under IS 17018-1. Overall system efficiency The proposed minimum overall efficiency at or above 80% of rated PV input power is: Controller Rating Conversion Efficiency MPPT Efficiency Minimum Overall Efficiency Below 5 HP At least 93% At least 97% At least 90.2% 5 HP and above At least 94% At least 97% At least 91.2% Testing would be carried out at minimum, nominal and 90% of maximum DC input voltage, with measurements at 10%, 25%, 50%, 75% and 100% input-power levels. Motor Control and Agricultural Load Operation The draft allows controllers to use constant V/f control, flux control or an equivalent manufacturer-developed control algorithm. The controller should provide stable operation from zero speed to rated speed. For a universal or multifunction solar pump controller used with equipment such as flour mills and chaff cutters, the draft proposes a minimum torque-overload capability of 150% for 30 seconds. The overload test may be conducted by: Increasing mechanical torque to 150% of rated torque; or Increasing motor current to 150% of rated current Annexure II also allows laboratories to use simulated loads instead of procuring every type of farm equipment. Dynamometers, motor arrangements, resistive loads and programmable load banks may be used to recreate relevant operating conditions. If the applied torque exceeds the permissible limit, the controller should initiate protective action and generate a torque-overload alarm or fault indication. Power-Quality Requirements Poor power quality can quietly damage motors, increase heating and shorten equipment life. The proposed requirements aim to keep the controller’s output within safe limits and maintain reliable motor performance under different operating conditions. 1. Sinusoidal motor output For induction and PMSM motors operating with a sinusoidal output the proposed limits are: Total harmonic distortion not exceeding 10% No individual harmonic exceeding 6% of the fundamental component Testing at 25% or minimum continuous load, 50% load and 100% rated load Harmonic evaluation from the second to the fortieth order These requirements are intended to reduce motor heating, insulation stress, torque ripple and long-term performance problems. 2. Intentionally non-sinusoidal output For controllers designed to supply a non-sinusoidal waveform to dedicated motor loads, the draft proposes: Voltage THD not exceeding 40% Voltage-transition slope not exceeding 10 V/µs Peak output voltage not exceeding 1.414 multiplied by 110% of rated RMS voltage. Verification at 10%, 50% and 100% of rated output power. Evidence that the controller-motor combination can operate without excessive heating, insulation stress or protection failure. 3. Voltage spikes For a 415 V motor system with more than 60 metres of cable, the proposed peak voltage at the motor terminals must not exceed 620 V. The spike duration must remain below 1 microsecond. Electrical Safety Requirements The draft also lays down safety checks for high-voltage electrical parts. These cover insulation, leakage current and stored charge, to reduce the risk of electric shock during use or maintenance. 1. Insulation withstand The draft proposes humidity preconditioning before dielectric testing. The controller would be exposed to 92% relative humidity at 40°C for 48 hours. The proposed dielectric test voltage is calculated as: Two times the maximum PV input voltage plus 1,000 V AC The voltage would be applied at 50 Hz for one minute. The proposed acceptance criteria are: Leakage current not exceeding 5 mA RMS No insulation breakdown No flashover No arcing Insulation resistance greater than 100 MΩ at 500 V DC after the test 2. Touch-current Limits During rated operation, the proposed limits are: Maximum 3.5 mA AC leakage Maximum 10 mA DC leakage 3. Stored-energy Discharge After disconnecting the PV input, the voltage at the PV terminals must fall below 60 V within 10 seconds. This requirement is intended to reduce the risk of electric shock during servicing or maintenance. Environmental-Protection Requirements Solar pump controllers are commonly installed in dusty fields and exposed to humidity, rain and high temperatures. The draft therefore classifies the equipment for Pollution Degree 3 and Overvoltage Category III conditions. 1. IP65 enclosure test The draft proposes both dust and water-jet testing. For dust protection, the controller would be exposed to circulating talcum powder at 2 kg/m³ for approximately eight hours, with a negative internal pressure of 2 kPa. For water protection, jets would be directed from multiple angles at a distance of 2.5 to 3 metres. The equipment would then be drained before inspection. The controller would pass where: No visible dust enters the enclosure No water accumulates in a manner affecting components or operation Normal operation continues after testing 2. Humidity Exposure The proposed humidity preconditioning is: 92% relative humidity, with a tolerance of ±3% 40°C, with a tolerance of ±2°C Continuous exposure for 48 hours No internal drying before dielectric testing Dielectric testing within two hours after removal 3. Impulse-voltage withstand The proposed impulse test uses a 6 kV peak impulse: Three positive pulses Three negative pulses Minimum one-minute interval Application between PV and motor, PV and earth, and motor and earth The controller would have to show no flashover, puncture, excessive leakage or component disruption. Thermal and Fault-Condition Tests The proposed tests focus on safe operation during heat, faults and abnormal conditions, with added safeguards for battery-based systems. Normal Thermal Test The controller would operate for four hours under rated conditions. Proposed maximum temperatures include: Component Maximum temperature Touchable metal surface 65°C Touchable metal surface 75°C Operator controls 55°C Transformer or motor windings 155°C for Class F Semiconductors Manufacturer’s datasheet limit Fan-block Test The draft proposes blocking controller vents or heat sinks with surgical cotton and operating the controller at full load for seven hours. The proposed acceptance conditions are: External surface temperature not exceeding 90°C No ignition No evidence of scorching or burning Output short-circuit Test Motor terminals would be shorted under full PV input. The test would record current, clearing time and controller response. The controller would need to remain stable or activate protection without causing fire or enclosure deformation. Dry-run Protection The controller should detect pump operation without adequate water and display a dry-run error. Open-circuit and reverse-polarity protection The controller should detect an open PV circuit and reverse polarity and provide a corresponding fault indication. Battery Storage and Charging Requirements Where a controller contains a battery-charging function, the draft proposes additional compliance with IS 16797:2019 and IEC 62509:2010. The proposed battery provisions include: Settable charging logic Constant-current and constant-voltage charging for LFP batteries Boost and float charging for lead-acid batteries Overcharge protection Over-discharge protection Load disconnection Charging set-point accuracy of ±1% Load-disconnect accuracy of ±2% Protection against unauthorised set-point changes Temperature-compensated charging, where applicable Reverse-polarity protection PV-side and load-side overcurrent protection Charging-status indication State-of-charge information Low-battery and load-disconnect alarms Annexure II contains blank spaces for manufacturer-specific charging currents, voltage cut-offs and set points. These values would need to be declared and verified for the particular battery system. Grid-Feeding and Anti-Islanding Requirements For grid-connected operation, the proposed hybrid controller would have to meet the anti-islanding requirements of IEC 62116 and the applicable safety provisions of IS 16221 Part 2. If the utility grid fails, the controller would have to: Detect the abnormal condition Disconnect from the grid within two seconds Prevent unintentional islanding Protect utility personnel and connected equipment Before connecting or reconnecting, the controller would need to synchronise its voltage, frequency and phase angle with the grid in accordance with IEC 61727 and the applicable Indian grid code. These technical provisions do not replace state-level interconnection, net-metering or distribution-licensee requirements. Remote Monitoring, Display and Alarm Requirements The draft proposes integration with a remote monitoring system using GSM or GPRS and geotagging. The controller display and remote system would provide information such as: Pump on/off status Fault name Dry-run fault Short-circuit fault Low-irradiance condition PV array input voltage DC and AC current DC and AC output voltage Operating frequency Latitude and longitude Pump capacity PV module capacity Current power generation Daily solar generation Cumulative solar generation Daily operating hours Cumulative pump operating hours Daily or cumulative water discharge Peak power supplied to the motor-pump set The draft does not expressly prescribe data-retention periods, cybersecurity controls, data ownership, communication charges, portal integration or privacy safeguards for this proposed controller-specific framework. These areas may require clarification before final implementation. Proposed Type-Test Sequence The draft includes a sequential testing structure covering: Visual inspection and rating-plate verification Humidity exposure Dielectric withstand Impulse-voltage withstand Touch-current measurement Stored-energy discharge Normal thermal testing IP65 testing Output-waveform testing Short-circuit testing Backfeed testing Fan-block testing Overload testing Efficiency testing Power-quality testing The table itself skips sequence number 14 and labels the last tests as 15 and 16. This appears to be a numbering issue rather than evidence of an omitted technical requirement, but it should be clarified in the final version. The draft also proposes a post-test protocol after every test. This includes dielectric verification, insulation-resistance measurement, visual inspection and confirmation that the controller can still perform its basic PV-to-motor function. Annexure II: Multifunction Controller Testing Annexure II provides a testing format for an off-grid multifunction controller. The laboratory would verify: Application selection through the controller display Automatic mode selection through a keypad or remote interface Prevention of manual changeover Application-specific software Operation across the declared PV input-voltage range Efficiency under hot and cold irradiance profiles Solar-only and battery-only performance Output ripple and distortion Three-phase and single-phase waveforms Operation at lower PV power levels Torque performance Battery charging Load disconnection Overcurrent protection Reverse-polarity protection Alarm functions Safety markings Touch current Impulse withstand Thermal limits Total circuit protection Actual flour mills, chaff cutters, freezers and farm equipment would not necessarily need to be installed in the laboratory. Equivalent loading could be simulated through motors, dynamometers, programmable loads and load banks. Likely Business Impact The proposed changes could affect manufacturers, testing bodies, system integrators and end users across the solar and rural-energy ecosystem. 1. Solar Pump Controller Manufacturers Manufacturers may need to review their hardware, firmware, enclosure, rating plate and thermal design against the proposed requirements. The wider voltage range, efficiency limits, IP65 tests, impulse withstand, multifunction outputs and detailed type-test sequence could require design changes or additional evidence. 2. PM-KUSUM Vendors and System Integrators Vendors may need to ensure that controller ratings match the connected PV array rather than only the pump’s motor rating. They may also need to verify compatibility among: PV modules Controllers Motor-pump sets Battery systems DAB converters Remote monitoring systems Grid interfaces 3. Testing Laboratories Testing laboratories could see increased demand for combined electrical, environmental, performance and functional testing. However, laboratories may require additional equipment for: Dynamic MPPT testing Hot and cold irradiance profiles Torque simulation IP65 testing Humidity preconditioning Impulse testing Battery-system assessment Grid-interactive and anti-islanding testing 4. Battery and Power-electronics Businesses The proposed storage configuration may create opportunities for battery manufacturers, DAB converter developers, energy-management providers and rural-energy solution companies. These opportunities remain dependent on the final specification, scheme design and procurement framework. 5. Farmers and Rural Users If implemented effectively, multifunction controllers could help farmers use solar electricity for more than irrigation. Potential applications include: Flour milling Chaff cutting Farm machinery Cold storage Refrigeration Household loads Community-energy applications The practical benefit would depend on system cost, available PV capacity, load compatibility, safe wiring, maintenance support and operating rules. Drafting Issues That May Require Clarification Stakeholders should consider raising the following points during consultation: 1. Different dates on the Memorandum and MNRE Webpage The office memorandum asks for comments by 28 August 2026. The MNRE notice webpage displays an end date of 11 October 2026. The Ministry may need to clarify the controlling consultation deadline. 2. Output-voltage Differences Annexure I refers to 220 V single-phase output, while Annexure II refers to 230 V single-phase output. The document also refers to 400 V, 415 V and up to 440 V in different contexts. These values may describe different operating or test conditions, but the final specification should explain their relationship clearly. 3. Different Distortion Limits The main body permits up to 10% THD for sinusoidal output and up to 40% for intentionally non-sinusoidal motor output. Annexure II separately states that ripple and distortion should be below 5% after 25% loading. The final document should explain whether the 5% requirement applies to voltage ripple, waveform distortion, a particular output or a separate measurement. 4. Insulation-resistance Inconsistency Clause 8.1 requires insulation resistance greater than 100 MΩ at 500 V DC after dielectric testing. The post-test protocol later refers to a value greater than 50 MΩ. A single acceptance limit should be specified. 5. Section and Test Numbering The draft contains repeated or missing numbering, including: Two different sections numbered 10 A type-test sequence that skips number 14 Annexure II skipping item 8 Duplicate overcurrent-protection entries numbered 18 and 19 A later display and monitoring section also numbered 13 Renumbering would improve usability and prevent test-reporting errors. 6. Cross-reference Issues The humidity section refers to dielectric testing under clause 6.1, although the relevant insulation test appears under clause 8.1. Cross-references should be checked before finalisation. 7. Four Outputs versus One Operating Load Annexure I describes four independent outputs, while the main body states that only one load may operate at a time. The final specification should clarify whether “independent” refers only to separate terminals and software configurations. 8. Testing and Certification Mechanism The draft requires independent testing but does not expressly specify: Which laboratories may conduct the tests Whether NABL accreditation is required Applicable accreditation scopes Whether one sample or multiple samples must be tested Test-report validity Retesting after design changes Surveillance requirements Product certification or registration procedure 9. Treatment of Existing Controllers The draft does not explain how a final specification would affect: Controllers already installed Products already type-tested Existing PM-KUSUM contracts Current tenders Products in inventory Models undergoing testing A transition or grandfathering framework may therefore be necessary. 10. Data and Remote-monitoring Governance The proposal lists extensive operational and geolocation data but does not expressly address cybersecurity, data ownership, access rights, retention, communication failure or portal interoperability. 11. Grid-interconnection Dependencies The hybrid model refers to grid import, export, net metering and behind-the-meter operation. The final document should clearly distinguish controller capability from the separate regulatory permission required for grid connection and export. How to Submit Comments The office memorandum invites comments from stakeholders by 28 August 2026. Comments may be sent to: rajkumarb.mnre@gov.in kamlesh.yadav@nise.res.in The memorandum does not prescribe a specific comment format. A structured clause-wise submission would make stakeholder feedback easier to evaluate. A useful comment matrix may contain: Draft clause- Existing wording- Issue identified- Suggested wording- Technical justification Stakeholders should support comments with test data, applicable standards, field-performance evidence, safety analysis or cost implications wherever possible. What Businesses Should Do Next 1. Conduct an Applicability Review Determine which controller models, motor technologies, operating modes and product configurations fall within the proposed scope. 2. Compare Existing Products with the Draft Prepare a technical gap assessment covering: Input-voltage range MPPT capability Efficiency Power quality Enclosure protection Electrical safety Thermal performance Fault protection Marking Remote monitoring Battery compatibility Grid-interactive functions 3. Review Available Test Evidence Identify which proposed requirements are already covered by current test reports and which would require fresh testing. 4. Assess Laboratory Capability Consult testing laboratories about equipment, accreditation scope, sample requirements, test duration and likely capacity constraints. 5. Identify Unclear or Conflicting Provisions Document any technical ambiguity that could affect design, testing, cost, procurement or interoperability. 6. Submit Evidence-based Comments Send clause-wise comments before the deadline stated in the office memorandum. Avoid limiting the submission to broad commercial objections. 7. Avoid Premature Compliance Claims Do not market a product as compliant with a final MNRE 2026 specification until the draft is finalised and the applicable conformity route is established. 8. Monitor the final Version Track MNRE notices for a final specification, revised draft, implementation timeline, transition arrangements or scheme-level adoption. How Corpseed Can Help Businesses involved in solar pumping and rural-energy systems may require both regulatory interpretation and technical coordination to respond effectively to the draft. Corpseed can assist with: Applicability assessment for controller models Clause-wise review of the proposed specification Technical compliance gap assessment Preparation of structured stakeholder comments Review of rating plates and technical documentation Coordination with suitable testing laboratories Review of existing test reports against proposed requirements Battery-storage and multifunction configuration assessment Grid-interactive requirement mapping PM-KUSUM tender and specification review Ongoing monitoring of the final MNRE requirements The purpose of this support is to help manufacturers and vendors understand the proposal, identify genuine technical gaps and prepare an evidence-based response. Final acceptance, testing, certification or approval would remain subject to the competent authority and applicable laboratory or scheme procedures. Businesses that manufacture, supply, test or integrate solar pump controllers can seek specialised solar pump technical compliance consulting before submitting comments or planning product changes.