Draft National Electricity Policy Aims To Strengthen Distribution
ECONOMY & POLICY

Draft National Electricity Policy Aims To Strengthen Distribution

A CEO roundtable on power distribution convened at the Bharat Electricity Summit considered reforms under the draft National Electricity Policy, 2026.

The meeting was chaired by the secretary of the Ministry of Power and included chief executives and senior leaders of major power sector organisations.

Participants welcomed the draft policy as a comprehensive and forward-looking framework that sets strategic direction for the sector.

Deliberations stressed that electricity supply must match the ambitions of Viksit Bharat at 2047, which envisages a USD 30 trillion (tn) economy and energy independence.

The draft targets raising per capita electricity consumption to 2,000 kWh by 2030 and to over 4,000 kWh by 2047, aligning with commitments to reduce emissions intensity by 45 per cent from 2005 levels by 2030 and to achieve net zero by 2070.

The policy also emphasises competition, grid resilience for higher shares of variable renewable energy and consumer centric service delivery.

A central concern was the financial sustainability of distribution companies, with strategies proposed for optimised procurement, single digit Aggregate Technical and Commercial losses and strengthened corporate governance.

The policy envisages phased rollout of smart meters with prepayment functionality beginning with government, commercial and industrial consumers, accompanied by regular energy audits and improved accounting practices.

Measures to promote shared distribution networks, GIS based asset mapping and system automation were highlighted as means to improve operational efficiency and reduce duplication.

The draft policy recognises the growing role of distributed energy resources and recommends establishment of a Distribution System Operator (DSO) to facilitate integration of distributed renewables, energy storage systems and Vehicle to Grid (V2G) technologies.

It proposes optimal network redundancy at specified voltage levels and redundancy at distribution transformer level for all cities with a population exceeding one million (mn) by 2032, along with underground cabling in congested urban areas.

The roundtable underlined the urgency of sustained reforms to secure distribution companies (DISCOMs) viability and to support India's broader economic and energy transition under the vision of Viksit Bharat at 2047.

A CEO roundtable on power distribution convened at the Bharat Electricity Summit considered reforms under the draft National Electricity Policy, 2026. The meeting was chaired by the secretary of the Ministry of Power and included chief executives and senior leaders of major power sector organisations. Participants welcomed the draft policy as a comprehensive and forward-looking framework that sets strategic direction for the sector. Deliberations stressed that electricity supply must match the ambitions of Viksit Bharat at 2047, which envisages a USD 30 trillion (tn) economy and energy independence. The draft targets raising per capita electricity consumption to 2,000 kWh by 2030 and to over 4,000 kWh by 2047, aligning with commitments to reduce emissions intensity by 45 per cent from 2005 levels by 2030 and to achieve net zero by 2070. The policy also emphasises competition, grid resilience for higher shares of variable renewable energy and consumer centric service delivery. A central concern was the financial sustainability of distribution companies, with strategies proposed for optimised procurement, single digit Aggregate Technical and Commercial losses and strengthened corporate governance. The policy envisages phased rollout of smart meters with prepayment functionality beginning with government, commercial and industrial consumers, accompanied by regular energy audits and improved accounting practices. Measures to promote shared distribution networks, GIS based asset mapping and system automation were highlighted as means to improve operational efficiency and reduce duplication. The draft policy recognises the growing role of distributed energy resources and recommends establishment of a Distribution System Operator (DSO) to facilitate integration of distributed renewables, energy storage systems and Vehicle to Grid (V2G) technologies. It proposes optimal network redundancy at specified voltage levels and redundancy at distribution transformer level for all cities with a population exceeding one million (mn) by 2032, along with underground cabling in congested urban areas. The roundtable underlined the urgency of sustained reforms to secure distribution companies (DISCOMs) viability and to support India's broader economic and energy transition under the vision of Viksit Bharat at 2047.

Next Story
Real Estate

FractoProp Secures SEBI Nod for Ridhama Real Estate Fund

FractoProp, a real estate-focused fund management company, has received registration from the Securities and Exchange Board of India (SEBI) for the Ridhama Real Estate Fund, a Category II Alternative Investment Fund (AIF). The approval marks a milestone as the firm expands its platform to offer structured real estate investment opportunities to institutional and sophisticated investors. The fund is targeting a corpus of Rs 50 crore, with a greenshoe option of up to Rs 75 crore, taking the total potential fund size to Rs 125 crore. The Ridhama Real Estate Fund will focus on structured credit ..

Next Story
Real Estate

Flex Spaces Reshaping Tier-2 Office Markets

India's leading cosmopolitan centres such as Bengaluru, Hyderabad, NCR and MMR continue to anchor the office market, but absorption surged by almost 30 per cent to 78.2 million (mn) sq ft in 2025 compared with 2023. Over 40 per cent of this demand was driven by Global Capability Centres (GCCs), whose footprint expanded by almost 50 per cent to approximately 35 million (mn) sq ft. As global uncertainty persists, large international companies regard India as a stable safe haven and are shifting focus from saturated Tier-1 markets to Tier-2 cities. The structural shift is underpinned by governmen..

Next Story
Infrastructure Urban

Bharat Electricity Summit To Showcase Rs50 tn Investment Opportunities

The Bharat Electricity Summit 2026 will be held from 19 to 22 March 2026 at Yashobhoomi in New Delhi and will convene international energy ministers, Indian central and state ministers and regulators. The four-day event is expected to feature more than 100 sessions, over 300 speakers, more than 500 exhibitors and 25,000 visitors from over 80 countries. The gathering will aim to foster dialogue on energy transition, grid modernisation, investment and technology indigenisation. Senior speakers will include Union ministers, the secretary of the Ministry of Power and the chairperson of the Central..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement