The Ministry of Power (MoP) issued a revised draft RCO notification, on 5th August, 2025 and invited comments by 19th August 2025. We have some suggestions and comments on the same. Please find the attached comments on the said notification. We have broadly made suggestions on following aspects:

1. Buyout price: consider only as last option, while placing some pre-conditions; price determination by MoP/ BEE (instead of CERC), in consensus with SERCs; prices more than REC discovered prices; need of sunset clause
2. Exemption for waste heat recovery for CPP: define consumption as simple as possible with no exemptions; reconsider exemption for waste heat recovery and fossil-fuel based co-generation, considering various orders by APTEL on application of RPO for such sources; allow exemptions with sunset or phase-out clauses only, if at all.
3. Aggregate compliance: consider complexities, which include jurisdictional issue for non-compliance proceedings, sharing of penalties amongst DCs, undue advantage and complexities in determining compliance in case compliance allowed across sectors (like steel, Aluminum, DISCOMs, etc.); need clarity on single-buyer model (power procurement for DISCOMs in a state)
4. Clarity about Penalty fund: maintain separate fund at national level (for better monitoring, accounting and transparency of funds and its utilization); sharing of penalty fund with state government
5. Some other additional points which need consideration by MoP/ BEE