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POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

o Universal Electrification Achieved: Villages and households across the country have been
electrified, marking a significant milestone in India’s power sector.

o Improved Power Availability: The average availability of electricity in rural areas has increased
from 12.5 hours in 2014 to 21.9 hours, while urban areas now enjoy up to 23.4 hours of power
supply, reflecting substantial improvements in the reliability and reach of electricity services.

Generation:

o Significant Growth in Installed Capacity: India’s total installed power generation capacity has
surged by 83.8%, increasing from 249 GW as of March 31, 2014, to 457 GW as of November 30,
2024*.

o Major Expansion in Renewable Energy: Since April 2014, 129 GW of renewable energy capacity,
including large hydro, has been added. This includes 91 GW of solar power, 27 GW of wind power,
3.2 GW of biomass, 1.3 GW of small hydro, and approximately 6.3 GW of large hydro generation
capacity, demonstrating India’s strong commitment to clean energy.

o Award of thermal projects: To address the peak demand of India’s rapidly expanding economy,
the Government has awarded 19.2 GW of new coal-based thermal capacity. The total installed
capacity of coal and lignite-based thermal plants now stands at 217.5 GW. An additional 29.2 GW
of capacity is under construction, with 13.4 GW expected to be commissioned in FY 2024-25. A
further 36.3 GW of capacity is in various stages of planning, clearances and bidding.

o Coal Stock Position: As of March, 2024, Domestic Coal-Based (DCB) power plants held a coal stock
of 47.8 MT. As of December, 2024, these plants hold 41.4 MT of coal which is targeted to increase
to 50 MT by March 2025. Sustained coal supply during Q1 and Q2 of FY 2025 ensured meeting
the peak demand of 250 GW in May 2024. With improved domestic coal availability, the Ministry
of Power discontinued its advisory for blending imported coal beyond October 15, 2024.

o Revision of SHAKTI Policy: The Government of India is reviewing the coal allocation policy to
encourage private sector participation. The revised policy proposes two simplified windows.
Window-I permits allocation of coal at "Notified Price" to Central Generating Companies and State
Governments. Window-II allows allocation to all generating companies (Central, State, or Private)
at a premium over the "Notified Price," irrespective of ownership or nature of PPAs. The new
policy aims to support the development of an additional 80 GW of thermal capacity.

o Hydro Projects. Central Government in November 2024 has approved Heo Hydro Electric Project
(186 MW) in Arunachal Pradesh. The project will be completed in 50 months at a cost of ?1939
Cr.

o CFA for HEPs NER: Union Cabinet in its meeting held on 28th August, 2024 has approved the
scheme of “Central Financial Assistance (CFA) towards equity participation by the State Govts. for
development of Hydro Electric Projects (HEPs) in North Eastern Region (NER)”. Under this scheme,
the equity portion of the State Government of NER (capped at 24% of the total project equity,
subject to a maximum of ?750 crore per project) would be funded through this scheme. The
scheme will be implemented during the period from FY 2024-25 to FY 2031-32, with a total
financial outlay of ?4136 crores.

o Enabling Infrastructure HEPs: Union Cabinet Union Cabinet in its meeting held on 11th September,
2024 has approved the scheme of “Modification of the Scheme on Budgetary Support for the Cost

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