{"id":69415,"date":"2026-03-19T18:22:21","date_gmt":"2026-03-19T12:52:21","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=69415"},"modified":"2026-03-19T18:22:53","modified_gmt":"2026-03-19T12:52:53","slug":"india-power-sector-2","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/19-03-2026\/india-power-sector-2","title":{"rendered":"India\u2019s Power Sector: Progress and Reforms"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Energy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s power sector has transitioned from a deficit-driven system to a more reliable and capacity-sufficient system due to sustained investments, policy reforms, and institutional strengthening over the past decade.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Key Achievements of Power Sector<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India\u2019s installed power capacity reached<strong> 520.51 GW<\/strong> as of January 2026, with the power shortage declining from 4.2% in FY14 to <strong>0.03% till December 2025<\/strong>.<\/li>\n\n\n\n<li>Per capita electricity consumption increased to <strong>1,460 kilowatt-hours in 2024\u201325, <\/strong>reflecting rising energy access and economic activity.<\/li>\n\n\n\n<li>DISCOMs recorded a profit of<strong> \u20b92,701 crore in FY25<\/strong>, reversing earlier financial losses.<\/li>\n\n\n\n<li><strong>Aggregate Technical and Commercial (AT&amp;C) losses<\/strong>, which represent energy lost due to technical inefficiencies and commercial leakages, declined from 22.62 per cent in FY14 to <strong>15.04 per cent in FY25.<\/strong><\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"c1d3cf\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"511\" height=\"416\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/03\/image-109.png\" alt=\"\" class=\"not-transparent wp-image-69416\" style=\"--dominant-color: #c1d3cf; width:383px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/03\/image-109.png 511w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2026\/03\/image-109-300x244.png 300w\" sizes=\"auto, (max-width: 511px) 100vw, 511px\" \/><\/figure>\n<\/div>\n\n\n<p><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Renewable Energy Transition<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>India&#8217;s total renewable energy capacity <\/strong>reached <strong>253.96 GW<\/strong> in November 2025, representing an increase of over 23% from 205.52 GW in 2024.<\/li>\n\n\n\n<li><strong>Solar installed capacity<\/strong> reached <strong>132.85 GW<\/strong> followed by <strong>Wind<\/strong> at around <strong>53.99 GW.<\/strong><\/li>\n\n\n\n<li><strong>India\u2019s Global Position:<\/strong>\n<ul class=\"wp-block-list\">\n<li>India ranks<strong> 3rd globally<\/strong> in <strong>solar power<\/strong> installed capacity.<\/li>\n\n\n\n<li>India ranks <strong>4th in wind power<\/strong> installed capacity.<\/li>\n\n\n\n<li>India ranks<strong> 4th in total renewable energy<\/strong> installed capacity worldwide.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>The leading states in India for renewable energy capacity are <strong>Rajasthan, Gujarat, Tamil Nadu, and Karnataka.<\/strong><\/li>\n\n\n\n<li>The country aims to achieve <strong>500 GW<\/strong> of non-fossil fuel capacity by<strong> 2030<\/strong> as part of its climate commitments.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Government Initiatives for Power Sector Growth<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)<\/strong> strengthened rural electrification and feeder separation.<\/li>\n\n\n\n<li><strong>Integrated Power Development Scheme (IPDS)<\/strong> improved urban distribution infrastructure and IT-enabled systems.<\/li>\n\n\n\n<li><strong>Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) Scheme<\/strong> ensured universal household electrification through last-mile connectivity.<\/li>\n\n\n\n<li><strong>Revamped Distribution Sector Scheme (RDSS) <\/strong>aims to improve efficiency and financial sustainability of DISCOMs with an outlay of \u20b93.03 lakh crore.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Policy and Regulatory Reforms<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>The Electricity (Late Payment Surcharge and Related Matters) Rules, 2022,<\/strong> aim to tackle DISCOM cash flow issues by establishing a structured, time-bound mechanism for settling outstanding dues.<\/li>\n\n\n\n<li><strong>Electricity (Amendment) Bill, 2026<\/strong> seeks to promote cost-reflective tariffs, rationalise cross-subsidies, and enable market-based power procurement.<\/li>\n\n\n\n<li><strong>The National Electricity Plan (2023\u20132032)<\/strong> provides a roadmap to meet projected peak demand of <strong>458 GW by 2032<\/strong> with large-scale investments.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Challenges<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Financial Stress in DISCOMs:<\/strong> Distribution companies (DISCOMs) continue to face financial stress due to high subsidy burdens imposed by state governments, especially for agriculture and domestic consumers.\n<ul class=\"wp-block-list\">\n<li>Operational inefficiencies such as <strong>power theft, poor billing, and low collection efficiency<\/strong> further increase losses.<\/li>\n\n\n\n<li>This weak financial position <strong>affects their ability to invest in infrastructure, <\/strong>pay generators on time, and ensure reliable supply.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>High Dependence on Coal:<\/strong> Despite growth in renewables, coal remains the dominant source of electricity generation in India. This leads to high carbon emissions, air pollution, and environmental degradation, affecting climate commitments.<\/li>\n\n\n\n<li><strong>Intermittent Renewable Energy:<\/strong> Renewable energy sources are intermittent in nature and the variability creates challenges in maintaining grid stability and balancing supply with demand in real time.<\/li>\n\n\n\n<li><strong>Need for Tariff Rationalisation:<\/strong> Electricity tariffs in India are <strong>not cost-reflective<\/strong>, as higher-paying industrial consumers subsidise agricultural and domestic users.\n<ul class=\"wp-block-list\">\n<li>This <strong>cross-subsidy structure<\/strong> leads to distorted pricing and reduces competitiveness of industries.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Accelerating the rollout of <strong>smart metering and digital billing systems<\/strong> will reduce AT&amp;C losses, improve billing efficiency, and enhance transparency.<\/li>\n\n\n\n<li>Enhancing <strong>grid infrastructure, including transmission corridors and flexible generation capacity,<\/strong> is critical for managing rising demand and renewable integration.<\/li>\n\n\n\n<li>Promoting <strong>cost-reflective tariffs with targeted direct benefit transfers (DBT)<\/strong> will reduce cross-subsidies while protecting vulnerable consumers.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: <\/strong><a href=\"https:\/\/www.pib.gov.in\/PressNoteDetails.aspx?NoteId=157872&amp;ModuleId=3&amp;reg=3&amp;lang=2\" target=\"_blank\" rel=\"noopener\"><strong>PIB<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p><strong> Context <\/strong><\/p>\n<li class=\"ms-5\"> India\u2019s power sector has transitioned from a deficit-driven system to a more reliable and capacity-sufficient system due to sustained investments, policy reforms, and institutional strengthening over the past decade. <\/li>\n<p><\/p>\n<p><strong> Key Achievements of Power Sector <\/strong><\/p>\n<li class=\"ms-5\"> India\u2019s installed power capacity reached 520.51 GW as of January 2026, with the power shortage declining from 4.2% in FY14 to 0.03% till December 2025. <\/li>\n<li class=\"ms-5\"> Per capita electricity consumption increased to 1,460 kilowatt-hours in 2024\u201325, reflecting rising energy access and economic activity. <\/li>\n<li class=\"ms-5\"> DISCOMs recorded a profit of \u20b92,701 crore in FY25, reversing earlier financial losses. <\/li>\n<p><a href=\" https:\/\/www.nextias.com\/ca\/current-affairs\/19-03-2026\/india-power-sector-2 \" class=\"btn btn-primary btn-sm float-end\">Read More<\/a><\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-69415","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/69415","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=69415"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/69415\/revisions"}],"predecessor-version":[{"id":69418,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/69415\/revisions\/69418"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=69415"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=69415"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=69415"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}