MODERNISATION OF THE POWER SECTOR AND RELIABLE ELECTRICITY SUPPLY

The Ministry of Power outlined recent developments in modernising India’s power sector. In FY 2025‑26, 9,470 MW of fossil‑fuel and 55,225 MW of non‑fossil capacity were added, alongside 2,668.54 MW of Battery Energy Storage System (BESS) capacity in 2026. The government is pursuing grid‑modernisation measures such as coordinated transmission planning, deployment of STATCOM/SVC, and integration of 47 GW BESS and 100 GW pumped storage by 2031‑32. The Revamped Distribution Sector Scheme (RDSS) has sanctioned Rs 1.53 lakh cr for loss reduction and Rs 1.31 lakh cr for smart metering, resulting in 7.24 crore smart meters installed and AT&C losses falling from 21.91 % (FY21) to 15.04 % (FY25). Additional policies include VGF support for BESS, waivers on ISTS charges, and reforms to improve financial performance of distribution utilities.