Archive · 23 Jan 2026
India's New Power Policy Seeks Rs 200 Trn Investment by 2047
The Indian government has made a new plan for electricity.
They want to spend a lot of money, Rs 200 trillion, by the year 2047 to make electricity better.
Right now, the companies that give us electricity have big losses and debts.
The government wants to fix this by letting more companies provide electricity in the same area and making the prices reflect the real cost.
They also want to use more clean energy and make sure everyone has enough electricity.
The plan says that from 2026, the prices should cover all costs and be updated every year.
They will also set up special funds to help pay for clean energy projects.
India's power sector requires Rs 200 trillion investment by 2047, with Rs 50 trillion needed by 2032.
National Electricity Policy (NEP) aims to make the sector financially viable and increase per capita power consumption to 4,000 kWh by 2047.
Proposed reforms include ending the monopoly in the distribution sector, promoting public-private partnerships, and listing distribution utilities.
Distribution companies have accumulated losses of Rs 6.9 trillion and outstanding debt of Rs 7.18 trillion.
Tariffs will be issued annually, with full cost recovery starting from FY 2026-27, and linked to an index for automatic annual revision.
- Who
- Indian Government
- What
- Drafted National Electricity Policy (NEP) for power sector reforms
- When
- Draft released on Wednesday (specific date not mentioned)
- Where
- India
- Why
- To make the power sector financially viable, increase per capita power consumption, and promote competition in supply
- Investment Needed
- Rs 200 trillion by 2047
- Target Per Capita Consumption
- 4,000 kWh by 2047
- Distribution Sector Losses
- Rs 6.9 trillion
- Outstanding Debt in Distribution
- Rs 7.18 trillion
- Proposed Tariff Timeline
- Issued before each financial year, true-up within the same year
- Regulatory Proceedings Deadline
- 120 days
- Tariff Full Cost Recovery Start
- FY 2026-27
