Mimansha Bashishtha | New Delhi
In a critical appeal to policymakers, Power Companies on Wednesday highlighted that several applications for General Network Access (GNA) remain pending, while others are stalled due to procedural uncertainties. It is essential that the required transmission infrastructure be made available in a timely manner within the vicinity of facilities, delays in which, they warn, could disrupt timelines for green ammonia projects being developed under the National Green Hydrogen Mission (NGHM).
Developers have also expressed concern over recent discussions suggesting that green ammonia producers may have to bear the full cost of setting up ISTS sub-stations. According to industry estimates, these costs could exceed ₹1,000 crore per project, accounting for as much as 10–15% of total project expenses which becomes a prohibitive burden, they say, for an industry that is expected to anchor India’s clean energy transition and position the country as a major energy exporter.
In this regard, stakeholders from the power sector have urged the government to ensure that the cost of Inter-State Transmission System (ISTS) sub-stations for green ammonia projects is treated as part of the common transmission infrastructure, a move they say is essential to maintaining India’s global competitiveness in the green hydrogen economy.
The appeal further underscores that the government’s earlier consultations — including those that identified key green hydrogen hubs such as Paradip, Tuticorin, Kandala, Khavda, and Kakinada for plant development, had been based on the understanding that common-use transmission infrastructure would be built to support industrial growth. Shifting these costs to individual developers, the stakeholders argue, marks a departure from that policy direction and risks undermining investor confidence.
Developers have also raised interpretational concerns regarding Regulation 12.5 of the Central Electricity Regulatory Commission’s (CERC) GNA Regulations, which has been cited as the basis for cost recovery. They contend that the regulation pertains only to the cost of dedicated connection lines, not to the construction of entirely new ISTS facilities, which are by design common-use assets under the Electricity Act, 2003, with the costs pooled and shared among all network users.
Power Companies see this issue as a potential inflection point for India’s clean energy leadership. With countries such as the EU and China extending significant fiscal incentives to developers, stakeholders are of the view that additional infrastructure costs could undermine India’s ability to establish leadership in global markets.
The urgency of the matter has assumed greater momentum in light of the recently concluded tender under the government’s SIGHT Scheme (Mode-2A, Tranche-I) for green ammonia production and supply.
Industry leaders have called for swift intervention to resolve the transmission cost issue to ensure that India’s green hydrogen rollout proceeds without regulatory or financial bottlenecks.
If addressed proactively, the sector believes, India could consolidate its position as one of the world’s most competitive producers and exporters of green hydrogen, thereby advancing the Prime Minister’s vision of achieving 5 MTPA of green hydrogen production capacity by 2030 and securing the country’s energy future.
Also Read: India’s Renewable Energy Sector Shifts Focus to System Reliability and Integration
