Efficient and equitable transmission pricing is crucial for India's rapidly expanding electricity grid, especially as renewable energy increasingly shapes the electricity landscape. This discussion paper provides a comprehensive review of how inter-state (ISTS) transmission pricing has evolved over the past two decades, transitioning from simple energy-based charges to sophisticated usage-based frameworks like the Point of Connection (PoC) and General Network Access (GNA) and critically assess the existing intra-state (InSTS) pricing mechanisms across various Indian states, identifying significant issues such as pricing distortions, limited regulatory oversight, and inconsistent tariff methodologies. 

Our analysis presents practical, evidence-based recommendations for reform. These include enhancing regulatory oversight in transmission planning to improve transparency and accountability, standardizing and rationalizing state-level pricing methodologies to ensure fairness and efficiency across jurisdictions and introducing structured multi-stakeholder consultations in planning processes to improve decision-making. Furthermore, we recommend transitioning from uniform postage stamp tariffs to pricing models that better reflect actual usage and incurred costs, integrating ISTS and InSTS pricing frameworks to eliminate inefficiencies and support seamless open access. Ultimately, our goal is to establish a coherent, harmonized, and dynamic transmission pricing regime that incentivizes efficient investment and paves the way for a robust and integrated national transmission pricing structure.