**Executive Summary**
This document is a response to Lok Sabha Unstarred Question No. 1904, answered on December 11, 2025, concerning new power projects to increase electricity production in India. It addresses the availability of funds, progress of new projects, achievement of targets, and steps taken to meet the increasing electricity demand. The document outlines government initiatives and schemes aimed at enhancing power generation and distribution. It also mentions that the works sanctioned under RDSS are expected to be completed by March 2028.
**Key Points / Main Content**
* **Electricity Generation and Funding:**
* As per the Electricity Act 2003, electricity generation is a delicensed activity.
* The Indian government does not directly provide funds for establishing generating stations.
* **Current and Future Generation Capacity:**
* The present installed generation capacity of the country is 505.023 GW.
* Ongoing projects include thermal, hydro, pumped hydro storage, battery energy storage, and nuclear projects.
* 1,56,900 MW of renewable capacity, including solar, wind, and hybrid power, is also under construction.
* Thermal (coal and lignite) capacity requirement by 2034-35 is projected to be approximately 3,07,000 MW. Ministry of Power intends to set up a minimum 97,000 MW of coal and lignite based thermal capacity.
* **Government Schemes and Initiatives:**
* Previous schemes (DDUGJY, IPDS, SAUBHAGYA) to improve power access and quality were closed on 31.03.2022.
* The Revamped Distribution Sector Scheme (RDSS) was launched in July 2021 with an outlay of Rs. 3,03,758 Crore, aiming to improve power supply quality and reduce losses. RDSS works are expected to be completed by March 2028.
* **Addressing Increased Demand:**
* The government is taking steps to meet future increasing demand, with peak demand growth detailed in an Annexure.
* The National Electricity Plan (NEP) projects an installed generation capacity of 874 GW by 2031-32.
* States have prepared Resource Adequacy Plans (RAPs) to ensure generation capacity remains ahead of peak demand.
* **Renewable Energy Promotion:**
* Inter-state transmission system (ISTS) charges have been waived for solar and wind projects commissioned by June 30, 2025, for Green Hydrogen Projects by December 2030 and for offshore wind projects by December 2032.
* Various schemes such as PM-KUSUM, PM Surya Ghar Muft Bijli Yojana, National Green Hydrogen Mission, and Viability Gap Funding (VGF) have been launched.
* Renewable Purchase Obligation (RPO) has been notified till 2029-30.
* **Transmission Planning:**
* About 1,91,474 ckm of transmission lines and 1,274 GVA of transformation capacity is planned to be added from 2022-23 to 2031-32.
**Impact Analysis**
**Generating Companies:**
* **Impact:** Responsible for establishing power plants based on techno-economic requirements without direct government funding.
* **Action Required:** Must develop power plants independently, considering commercial viability.
**State Governments/Power Utilities:**
* **Impact:** Responsible for power supply and distribution within their jurisdiction.
* **Action Required:** Collaborate with the central government and implement schemes like RDSS to improve distribution infrastructure, reduce losses, and ensure power supply.
**Consumers:**
* **Impact:** Will benefit from improved power supply quality and reliability through RDSS and increased generation capacity.
* **Action Required:** Comply with Renewable Consumption Obligations (RCOs) and any applicable penalties for non-compliance.
**Renewable Energy Developers:**
* **Impact:** Can participate in the numerous schemes for promoting renewable energy, including setting up solar parks and wind projects.
* **Action Required:** Leverage government support to install projects and meet the growing demand for renewable power.
Key Entities Referenced
Electricity Act 2003: Governs the generation of electricity, making it a delicensed activity.
Revamped Distribution Sector Scheme (RDSS): Launched in July 2021, aims to improve power supply quality and reliability through a financially sustainable distribution sector.
National Electricity Plan (NEP): Used for Generation planning, predicts installed capacity by 2031-32.
Ministry of Power: The government ministry responsible for ensuring the increased electricity production.
Resource Adequacy Plans (RAPs): 10-year rolling plans by states, in consultation with CEA, to ensure generation capacity remains ahead of projected peak demand.
GOVERNMENT OF INDIA
MINISTRY OF POWER
LOK SABHA
UNSTARRED QUESTION NO.1904
ANSWERED ON 11.12.2025
NEW POWER PROJECTS TO INCREASE ELECTRICITY PRODUCTION
†1904. SHRI ASHOK KUMAR RAWAT:
Will the Minister of POWER
be pleased to state:
(a) the details and names of the projects for which funds have been given to
increase the production and provide 24X7 supply of electricity in the country;
(b) whether new projects have been announced and works on those is under
progress;
(c) if so, the time by which the targets are likely to be achieved under the
projects;
(d) whether the demand for electricity in megawatt is increasing in rural and
urban areas of the country every year; and
(e) if so, the details thereof and the steps taken by the Government to meet the
said demand?
A N S W E R
THE MINISTER OF STATE IN THE MINISTRY OF POWER
(SHRI SHRIPAD NAIK)
(a) to (c): As per the Electricity Act 2003, the generation of electricity is a
delicensed activity. Any Generating Company can establish Power Plant taking into
account its techno-economic and commercial requirement. The Government of
India do not provide funds for establishment of any Generating Station.
The present installed generation capacity of the country is 505.023 GW. In
order to further augment the generation capacity to meet the future power demand
in the country, Thermal Projects of total capacity of 40,345 MW, Hydro Projects of
total capacity of 13,224 MW, Pumped Hydro Storage Projects with capacity of
11,870 MW, Battery Energy Storage System (BESS) with capacity of 8,498.95
MW/24,582.20 MWh and Nuclear Projects with capacity of 6,600 MW are under
construction. In addition, 1,56,900 MW Renewable Capacity including 69,180 MW of
Solar, 29,650 MW of Wind and 57,630 MW Hybrid power is also under construction.
….. 2– 2 –
Electricity being a concurrent subject, the supply and distribution of
electricity to the various categories of consumers in a State/UT is within the
jurisdiction of the respective State Government/Power Utility. Government of India
(GoI) has been supplementing the efforts of States/ distribution utilities through
various reform measures/schemes with the objective of improving the financial
health of the DISCOMs and to reduce AT&C losses. Government of India (GoI) has
been supporting the States/ UTs through schemes like Deen Dayal Upadhyaya Gram
Jyoti Yojana (DDUGJY), Integrated Power Development Scheme (IPDS), Pradhan
Mantri Sahaj Bijli Har Ghar Yojana (SAUBHAGYA) to improve access and quality of
power supply to all consumers. Under these schemes, projects worth Rs. 1.85 lakh
Cr. were executed for strengthening of power distribution infrastructure. These
schemes have been closed as on 31.03.2022.
Further, Government of India, in July 2021, launched the Revamped
Distribution Sector Scheme (RDSS) with the objective of improving the quality and
reliability of power supply to consumers through a financially sustainable and
operationally efficient Distribution Sector in the country. The scheme has an outlay
of Rs. 3,03,758 Crore with an estimated Government Budgetary Support (GBS) of
Rs. 97,631 Crore. The scheme aims to reduce the Aggregate Technical and
Commercial (AT&C) losses to pan-India levels of 12-15% and the Average Cost of
Supply and Average Revenue Realized (ACS-ARR) Gap to zero. Under the scheme,
projects worth Rs. 1.53 lakh crore and Rs 1.31 lakh crores for distribution
infrastructure and smart metering works respectively have been sanctioned which
will facilitate to improve the reliability of power supply in the country. These works
are under various stages of implementation and would be completed before the
timeline of RDSS i.e. March 2028.
(d) & (e): There has been consistent growth in peak demand in the country. The
peak demand in the country during the last five years is given at Annexure. Despite
consistent growth in power demand over the past years, the gap between the
power demand and availability has declined due to significant increase in the
generation capacity in the country.
Government of India has taken following steps to meet the future increasing
demand of the country:
1. Generation Planning:
(i) As per National Electricity Plan (NEP), installed generation capacity in 2031-32
is likely to be 874 GW. This includes capacity from conventional sources- Coal,
Lignite etc., renewable sources- Solar, Wind and Hydro.
(ii) With a view to ensure generation capacity remains ahead of projected peak
demand, all the States, in consultation with CEA, have prepared their “
Resource Adequacy Plans (RAPs)”, which are dynamic 10 year rolling plans
and includes power generation as well as power procurement planning.
(iii) All the States were advised to initiate process for creating/ contracting
generation capacities; from all generation sources, as per their Resource
Adequacy Plans.– 3 –
(iv) In order to augment the power generation capacity, the Government of India
has initiated following capacity addition programme:
(A) The projected thermal (coal and lignite) capacity requirement by the
year 2034–35 is estimated at approximately 3,07,000 MW as against the
2,11,855 MW installed capacity as on 31.03.2023. To meet this requirement,
Ministry of Power has envisaged to set up an additional minimum 97,000 MW
coal and lignite based thermal capacity.
To meet this requirement, several initiatives have already been
undertaken. Thermal capacities of around 16,560 MW have already been
commissioned since April 2023 till November 2025. In addition, 40,345 MW
of thermal capacity (including 4,845 MW of stressed thermal power projects)
is currently under construction. The contracts of 22,920 MW have been
awarded and is due for construction. Further, 24,020 MW of coal and lignite-
based candidate capacity has been identified which is at various stages of
planning in the country.
(B) 13,223.5 MW of Hydro Electric Projects are under construction.
Further, 4,274 MW of Hydro Electric Projects are under various stage of
planning and targeted to be completed by 2031-32.
(C) 6,600 MW of Nuclear Capacity is under construction and targeted to
be completed by 2029-30. 7,000 MW of Nuclear Capacity is under various
stages of planning and approval.
(D) 1,56,900 MW Renewable Capacity including 69,180 MW of Solar, 29,650
MW of Wind and 57,630 MW Hybrid power is under construction while 51,420
MW of Renewable Capacity including 36,530 MW of Solar and 13,090 MW
Hybrid Power is at various stages of planning and targeted to be completed
by 2029-30.
(E) In energy storage systems, 11870 MW/71220 MWh Pumped Storage
Projects (PSPs) are under construction. Further, a total of 6580 MW/39480
MWh capacity of Pumped Storage Projects (PSPs) are concurred and yet to
be taken up for construction. 25,407.54 MW/77,092.52 MWh Battery Energy
Storage System (BESS) are currently under various stages of
construction/bidding,
2. Transmission Planning: Inter and Intra-State Transmission System
has been planned and implementation of the same is taken up in matching time
frame of generation capacity addition. As per the National Electricity Plan, about
1,91,474 ckm of transmission lines and 1,274 GVA of transformation capacity is
planned to be added (at 220 kV and above voltage level) during the ten year period
from 2022-23 to 2031-32.– 4 –
3. Promotion of Renewable Energy Generation:
(i) Inter State Transmission System (ISTS) charges have been waived for
inter-state sale of solar and wind power for projects to be commissioned
by 30th June 2025, for Green Hydrogen Projects till December 2030 and
for offshore wind projects till December 2032.
(ii) Standard Bidding Guidelines for tariff based competitive bidding process
for procurement of Power from Grid Connected Solar, Wind, Wind-Solar
Hybrid and Firm & Dispatchable RE (FDRE) projects have been issued.
(iii) Renewable Energy Implementing Agencies (REIAs) are regularly inviting
bids for procurement of RE power.
(iv) Foreign Direct Investment (FDI) has been permitted up to 100 percent
under the automatic route.
(v) To augment transmission infrastructure needed for steep RE trajectory,
transmission plan has been prepared till 2032.
(vi) Laying of new intrastate transmission lines and creating new sub-station
capacity has been funded under the Green Energy Corridor Scheme for
evacuation of renewable power.
(vii) Scheme for setting up of Solar Parks and Ultra Mega Solar Power projects
is being implemented to provide land and transmission to RE developers
for installation of RE projects at large scale
(viii) Schemes such as Pradhan Mantri Kisan Urja Suraksha evam Utthaan
Mahabhiyan (PM-KUSUM), PM Surya Ghar Muft Bijli Yojana, National
Programme on High Efficiency Solar PV Modules, New Solar Power
Scheme (for Tribal and PVTG Habitations/Villages) under Pradhan Mantri
Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN) and Dharti Aabha
Janjatiya Gram Utkarsh Abhiyan (DA JGUA), National Green Hydrogen
Mission, Viability Gap Funding (VGF) Scheme for Offshore Wind Energy
Projects have been launched
(ix) To encourage RE consumption, Renewable Purchase Obligation (RPO)
followed by Renewable Consumption Obligation (RCO) trajectory has been
notified till 2029-30. The RCO which is applicable to all designated
consumers under the Energy Conservation Act, 2001 will attract penalties
on non-compliance.
(x) “Strategy for Establishment of Offshore Wind Energy Projects” has been
issued.
(xi) Green Term Ahead Market (GTAM) has been launched to facilitate sale of
Renewable Energy Power through exchanges.
(xii) Production Linked Incentive (PLI) scheme has been launched to achieve
the objective of localisation of supply chain for solar PV Modules.
****ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PARTs (d) & (e) OF UNSTARRED QUESTION
NO. -1904 TO BE ANSWERED IN THE LOK SABHA ON 11.12.2025.
The details of growth in peak demand of the country for the last five years:
Peak Demand Peak Met Demand not Met
Year
%
(MW) % Growth (MW) (MW (%)
Growth
2020-21 1,90,198 3.5 1,89,395 3.8 802 0.4
2021-22 2,03,014 6.7 2,00,539 5.9 2,475 1.2
2022-23 2,15,888 6.3 2,07,231 3.3 8,657 4.0
2023-24 2,43,271 12.7 2,39,931 15.8 3,340 1.4
2024-25 2,49,856 2.7 2,49,854 4.1 2 0.001
****