The Power and New & Renewable Energy Union Minister, R. K. Singh, highlighted the significant growth of India's power sector, citing a 60% increase in electricity generation and consumption compared to the 2014-15 period. Speaking at the ET Now Global Business Summit, Singh emphasized the sector's critical contribution to the nation's economy, noting an 8% growth over the last year alone, indicating a profitable opportunity for investors amid India's economic acceleration.
Addressing the summit on "The Global Energy Agenda: A Look Ahead in Shaping Tomorrow's Energy Landscape," Singh pointed out the transformation in the power sector, which has become more attractive to investors, moving away from long-term Power Purchase Agreements to a market-driven approach. He highlighted the government's efforts to ensure transparency and efficiency, including introducing an automatic payment mechanism for power suppliers, which has significantly reduced financial stress in the sector.
The minister detailed the government's success in lowering AT&C losses to around 15% and reducing the ACS-ARR gap to 15 paise last year, with legacy dues of generation companies dropping to Rs 42,000 crore. Average daily power availability has also improved dramatically, with rural areas now receiving around 22.5 hours of electricity daily and urban areas approximately 23.8 hours.
Singh also discussed the strategic push towards renewable energy, noting that India's non-fossil-fuel capacity now stands at 44% of total power capacity, exceeding its NDC commitments. With a total of 27 GW of thermal power capacity under construction and significant advancements in renewable and hydropower, India is on track to meet its ambitious energy goals.