Archive · 22 Jan 2026
India Proposes Index-Linked Tariffs, Boosts Renewables
India wants to make electricity prices change automatically every year based on costs.
This means if the cost of making electricity goes up, the price you pay will too, but it will happen every month.
The government says this is important so that the companies that provide electricity don't lose money.
They also want to use more renewable energy and small nuclear reactors to make electricity.
This will help India use less energy from other countries and be more self-sufficient.
The government is also giving money to build these small nuclear reactors.
They want to have a lot more nuclear power by 2047 and be completely clean by 2070.
India proposes index-linked annual power tariff revisions with monthly cost pass-through to consumers.
Discoms have accumulated losses of Rs 6.9 lakh crore and outstanding debt of Rs 7.18 lakh crore.
Government aims to reduce cross-subsidies and target single-digit AT&C losses by 2047.
India is investing in small nuclear reactors and renewables to reduce energy import dependence.
Target of 100 GWe of installed nuclear capacity by 2047, with net-zero emissions by 2070.
- Who
- Indian government and power utilities
- What
- Proposal for index-linked power tariffs and boost to renewables and nuclear energy
- When
- January 22, 2026
- Where
- New Delhi, India
- Why
- To ensure financial sustainability of the power sector and reduce energy import dependence
- Proposed Tariff Revision
- Annual, index-linked, with monthly cost pass-through
- Discoms' Accumulated Losses
- Rs 6.9 lakh crore
- Discoms' Outstanding Debt
- Rs 7.18 lakh crore
- Targeted AT&C Losses
- Single-digit by 2047
- SMR Investment
- ₹20,000 crore in 2025-26 Union Budget
- Target SMRs by 2033
- At least five indigenously developed
- Target Nuclear Capacity by 2047
- 100 GWe
- Net-Zero Emissions Target
- 2070
Sources
India urges power utilities to cut electricity costs, boost renewable energy
Discoms need to be financially strong for improved services: Power Minister
Cross subsidy accounts for 10% of industrial tariffs, impacting cost of supplying electricity
NEP 2026 proposes index-linked power tariffs with monthly cost pass-through