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					</table>The Grid Controller of India (<a href="https://grid-india.in/" target="_blank" rel="noopener">Grid-India</a>) has proposed changes to the Central Electricity Regulatory Commission‘s (<a href="https://cercind.gov.in/index.html" target="_blank" rel="noopener">CERC</a>) draft procedure for the grant of temporary general network access (T-GNA) to the interstate transmission system.
Stakeholders can share their feedback/comments by October 30, 2025.
Grid India has proposed to mandate an adequate margin in the transmission system to enable the scheduling of power projects up to their full T-GNA capacity.
The amendment also proposes that entities registered with the national open access registry (NOAR) for short-term open access approval are no longer exempted from registering with the regional load dispatch centers (RLDC) of their respective state for T-GNA approval.
It also proposes to mandate an adequate margin in the transmission system to enable the scheduling of power projects up to their full capacity for which GNA has been granted.
Bi-Monthly Standing Clearance
In cases where GNA has not yet become effective, RLDC will identify generating stations that have sought approval of deemed T-GNA and provide standing clearance on a bi-monthly basis.
The RLDC will grant the clearance for T-GNA based on the availability of margin in the transmission system.
When allocating transmission margins under T-GNA, renewable energy projects connected to a pooling station via deemed T-GNA will be treated on par with those with GNA and where the GNA is yet to become effective at the same pooling station.
Under the bi-monthly clearance system, applicants seeking standing clearance for a deemed T-GNA between the 1st and 15th of the month must apply within 24 hours of the 25th day of the previous month.
Such applications will be received on a pro-rata basis, and permission will be granted based on available transmission capacity. If applications are received after the 25th of the previous month, they will be treated on a first-come, first-served basis.
Under the same system for seeking standing clearance for the 16th to the end of the month, applications must be filed within the 10th day of the current month. In such cases, the applications are processed on a pro-rata basis based on the availability of transmission margin. Applications received after the 10th day of next month will be processed on a first-come, first-served basis.
In the case of hybrid power generators with or without energy storage systems, standing clearance can be granted for the individual power generator up to their respective installed capacity. The generators must ensure the project’s scheduling remains within the connectivity quantum.
Any entity that has been granted T-GNA for renewable energy projects (T-GNARE) can convert it into a T-GNA by submitting an application to the nodal RLDC. It can also initiate power delivery only after four months from the application date.
Calculation of Margin
 For the calculation of the margin of transactions under the advance bilateral category, the amendment proposes the following formula for calculating export T-GNA margin:
Export T-GNA margin = Export Available Transfer Capacity &#8211;(A% export PPA quantum + approved advance T-GNA
Where ‘A’ factor is determined by the NLDC from time to time, based on renewable energy variability and other system exigencies.
Here, the quantum under PPA will be obtained from the contract information furnished by the entities to RLDCs while scheduling under GNA and T-GNA applications.
Operation Charges
The applicant for bilateral and collective T-GNA must pay operating charges to the host RLDC, along with payment of ISTS charges. These operating charges must be submitted in compliance with the timeline for ISTS charges. Any applicant who fails to pay the operating charges within the timelines will be blocked through the NOAR.
If the applicant for T-GNA or T-GNARE projects fails to pay operating charges within the stipulated time, the approved transmission margin will be rejected. The margin of transmission released will be scheduled for other GNA and T-GNA/T-GNARE applications.
For advance T-GNA or exigency T-GNA under bilateral transaction, the applicant must pay operating charges to the host RLDC at the rate of ₹1,000 (~$11.3)/day.
A regional entity that already pays RLDC charges for the installed capacity under the RLDC Fees and Charges Regulations is exempt from paying operating charges for T-GNA for the same installed capacity.
For collective transactions, each successful buyer and seller must pay NLDC operating charges to the respective power exchange, based on the energy scheduled by NLDC, at the rate of ₹1 (~$0.01)/MWh, and subject to a maximum of ₹200 (~$2.26) per day.
Each successful buyer must pay operating charges for T-GNA under collective transactions for drawal schedules exceeding the GNA quantum, the T-GNA quantum, or both.
To determine whether the drawal schedule exceeded the GNA quantum, T-GNA quantum, or both in the case of a collective transaction, the SLDC will furnish to NLDC each intrastate entity-wise detail of schedules under GNA or T-GNA, as applicable, by 1400 hours of the next day of delivery. The intrastate entity-wise detail of schedules must be transferred through the NOAR.
Upon receiving this information, NLDC will issue a power exchange-wise and entity-wise segregation of payable operating charges by 1700 hours on the next day of delivery.
The payable operating charges will be allocated to the power exchanges in the ratio of requisition by the entity in the respective exchange for the day.
If the NLDC does not receive the information from SLDC by 1400 hours of the next day of delivery, it must issue operating charges by 1700 hours of the next day of delivery.
NOAR will notify the operating charges for T-GNA under collective transactions at 1700 hours on the next day, and payments of operating charges will be made by the exchanges to NLDC by 2400 hours on the next day.
Operating charges will also apply to the scheduling of power from an alternate source by a generating station in accordance with the Indian Electricity Grid Code.
In cases where Advance T-GNA or T-GNARE for more than one month in advance is scheduled to start within the next three working days, the transmission charges for the first month must be deposited by 04:00 hours of the day prior to the scheduling of the transaction under T-GNA/T-GNARE approval.
The transmission charges for subsequent months will be paid by 24:00 hours, two days before the last day of the current month, for transactions in the next month on a rolling basis.
Failure to comply with this schedule will also result in the defaulting applicant being auto-blocked through NOAR.
In the event of power curtailment, transmission constraints, or revisions to transactions from the previous month, the nodal agency will refund operating and ISTS charges to concerned applicants, including power exchanges, by the 15th day of the following month. In case no discrepancy is reported within 15 days from the date of issue of the reconciliation statement, the statement will be deemed reconciled.
Recently, CERC <a href="https://mercomindia.com/cerc-notifies-amendment-to-connectivity-and-gna-regulations-2025" target="_blank" rel="noopener">notified</a> the Connectivity and GNA to the Interstate Transmission System (Third Amendment) Regulations, 2025. The new rules modify several aspects of the Principal Regulations of 2022, introducing expanded definitions, revised procedures for application withdrawals, restructuring of bank guarantee requirements, rules for connectivity to ISTS substations, and detailed compliance obligations for renewable generating stations and energy storage systems.
Subscribe to Mercom’s real-time <a href="https://www.mercomindia.com/product/mercoms-renewable-energy-regulatory-updates" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don’t miss any critical updates from the renewable industry.

Grid India Proposes Transmission Margin for Full T-GNA Capacity Utilization

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					</table>Finance Minister Nirmala Sitharaman reaffirmed the government&#8217;s commitment to strengthening domestic value addition and enhancing India&#8217;s manufacturing ecosystem for solar cells and modules, electric vehicles (EVs), lithium-ion batteries, and high-voltage transmission equipment.
Presenting the Union Budget 2025, she noted that the power sector is among the six focus domains for India’s growth potential and global competitiveness during the next five years.
The Budget saw revisions in estimates for various energy programs. The allocation for the total solar sector has gone up from ₹150.61 billion (~$1.73 billion) to ₹242.24 billion (~$2.79 billion). The National Green Hydrogen Mission’s funding was raised from ₹3 billion (~$34.6 million) to ₹6 billion (~$69.24 million).
The expenditure for the Green Energy Corridor, however, remained unchanged at ₹6 billion (~$69.24 million). On the other hand, the outlay for wind power and other renewable energy projects has been reduced from ₹8.46 billion (~497.64 million) to ₹5.51  billion (~$63.59 million).
Duty Cuts on Solar Cells and Modules
The Budget introduced revisions to customs duties on solar cells and modules. The duty on solar cells has been revised from 25% to 20%, and the duty on solar modules from 40% to 20%.
For solar cells, the earlier duty structure was 25% basic customs duty (BCD) + 2.5% Social Welfare Surcharge (SWS), bringing the effective duty to 27.5%. Under the new structure, BCD is reduced to 20%, but a 7.5% Agriculture Infrastructure and Development Cess (AIDC) has been introduced.
For solar modules, the earlier structure included 40% BCD + 4% SWS, making the effective duty 44%. The revised structure lowers BCD to 20% but introduces a 20% AIDC.
Sitharaman said the government will set up a National Manufacturing Mission covering small, medium and large industries for furthering “Make in India” by providing policy support, execution roadmaps, governance and monitoring framework for central ministries and states.
“Given our commitment to climate-friendly development, the Mission will also support Clean Tech manufacturing. This will aim to improve domestic value addition and build our ecosystem for solar PV cells, EV batteries, motors and controllers, electrolyzers, wind turbines, very high voltage transmission equipment and grid-scale batteries
In a significant move to boost the availability of critical minerals essential for India&#8217;s clean energy transition, the Finance Minister eliminated customs duties on waste and scrap of several critical minerals, including antimony, beryllium, bismuth, cobalt, cadmium, molybdenum, rhenium, tantalum, tin, tungsten, zirconium, and copper. Previously subject to varying duty rates of 10%, 5%, and 2.5%, these minerals will now be exempt from import duties.
Waste and scrap of lithium-ion batteries, cobalt powder, lead, and zinc, which were previously subject to a 5% duty, have also been fully exempted.
This follows Sitharaman’s July 2024 Budget announcement to <a href="https://www.mercomindia.com/india-2024-budget" target="_blank" rel="noopener">exempt</a> basic customs duty on 25 critical minerals unavailable domestically and to reduce duties on two others, aimed at encouraging their processing, particularly by micro, small, and medium enterprises. These measures would secure raw material availability for domestic manufacturing and create employment opportunities for Indian youth.
The minister also noted that a policy for recovery of critical minerals from mine tailings will be announced.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-76019 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025.png" alt="Budget 2025" width="1018" height="806" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025.png 1018w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025-300x238.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025-768x608.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025-650x515.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025-624x494.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2025/02/Budget-2025-600x475.png 600w" sizes="auto, (max-width: 1018px) 100vw, 1018px" /></a>
Power Sector Reforms
The government has introduced incentives for electricity distribution reforms to improve the financial health and operational efficiency of distribution companies. Additionally, it will facilitate the augmentation of intra-state transmission capacity. Additional borrowing of 0.5% of the gross state domestic product will be allowed to encourage states to undertake reforms, provided they implement the prescribed changes.
EV Push
Further expanding the government&#8217;s push for EV adoption, the Finance Minister proposed adding 35 new capital goods to the list of exempted items for lithium-ion battery manufacturing. This move is expected to significantly bolster the domestic production of EV batteries, reducing dependence on imports and fostering self-reliance in the sector.
Regulatory Reforms
Sitharaman also announced that a high-level Committee for Regulatory Reforms will be established to review all non-financial sector regulations, certifications, licenses, and permissions. The committee is expected to make recommendations within a year.
The review&#8217;s objective is to strengthen trust-based economic governance and take transformational measures to enhance ‘ease of doing business’, especially in matters of inspections and compliance. States will be encouraged to join in this endeavor.
Sitharaman highlighted the importance of developing at least 100 GW of nuclear energy by 2047 to support the country&#8217;s energy transition in a significant step towards enhancing India&#8217;s nuclear energy capabilities. To achieve this goal, the government will amend the Atomic Energy Act and the Civil Liability for Nuclear Damage Act to encourage active participation from the private sector.
A new Nuclear Energy Mission will be established, focusing on research and development of small modular reactors, with an allocation of ₹200 billion (~$2.30 billion). This mission aims to operationalize at least five indigenously developed small modular reactors by 2033, marking a major milestone in India&#8217;s nuclear energy future.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates</a> to ensure you don&#8217;t miss any critical updates from the renewable industry.

Budget 2025 Focuses on Clean Energy Manufacturing, Halves Solar Module Duty to 20%

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