CERC issued an interim order dated 6th May 2026 on devising a mechanism for treatment of connectivity granted under the GNA Regulations based on the LoA where the PPA has not been signed within a period of 12 months from the date of issuance of the LoA. The commission had invited comments up to 21st May 2026.
This issue was raised in an earlier staff paper in Nov 2025, wherein various options were proposed to address the issue, along with certain suggestions relating to future connectivity application processes. Comments were sought from stakeholders on that staff paper as well. Based on the inputs received from stakeholders and the recent MoP OM dated 16th April 2026, the commission has issued this interim order. Given this background, we have certain suggestions and comments, which are briefed below.
- Specify the cut-off date for LoAs that would be eligible under the proposed mechanism.
- Suggestions on the three options for adressing the issue:
- Reconsider the criteria for selection of successful bidder in auction process, wherein it was suggested to move away from ""First come, First serve"" basis towards a more balanced approach which consider source mix, commissioning date and improving grid stability, in addition to the premium offered over base price for connnectivity
- Provide further clarification for three options- Option 1 (change in source mix), option 2 (how to treat excess quantum in LoA2) and option 3 (mentioning timeline for reallocation exercise)
- Directing CTU to issue draft modalities of auction process within 30 days from the issuance of final order by commissio
- Review the process for granting fresh connectivity in future, which include either transition from LoA route to PPA route or adopt auction mechanism as sole option. Further, the CTU should be directed to improve data reporting in the public domain and utilise such data for evidence-based decision-making relating to future connectivity planning, auction design, transmission investments, and corrective regulatory interventions.