Page 50 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

India has achieved a landmark in its energy transition journey by reaching 50% of its installed electricity
capacity from non-fossil fuel sources - five years ahead of the target set under its Nationally Determined
Contributions to the Paris Agreement. The country is aiming to reach 500 GW of non-fossil energy capacity
by 2030. As a Central Public Sector Enterprise and the leading Power Utility of the Country, NTPC, aims to
add 60 GW of Renewable Energy Capacity by 2032 which will help the Country in achieving the aforesaid
target and move towards larger aim of having ‘Net Zero’ emissions by 2070.

NGEL is the flag-bearer listed subsidiary of NTPC Group for renewable energy capacity addition through
organic and inorganic growth. The organic growth is proposed to be done primarily through NGEL’s wholly
owned subsidiary NREL. NGEL has also formed curated partnerships with various State Governments and
CPSUs for RE project development. NGEL has a portfolio of ~32 GW RE capacity including ~ 6 GW
Operational capacity, ~17 GW Contracted/ Awarded capacity and Pipeline of ~9 GW.

Smart Meters Installed Under Revamped Distribution Sector Scheme (RDSS)

Under the Revamped Distribution Sector Scheme (RDSS), 20.33 crore smart meters have been sanctioned
in 28 States/ UTs, out of which 2.41 crore smart meters have been installed as on 15.07.2025. For the
state of Gujarat, 1.67 crore smart meters have been sanctioned under RDSS, out of which 20.94 lakh smart
meters have been installed as on 15.07.2025.

Smart meters help the distribution utilities in improving their billing efficiency as below:

i. Provide real-time data, eliminating the need for estimated readings, which can lead to billing
inaccuracies.

ii. Automated data collection process minimizes human error associated with manual meter reading
and billing.

iii. Help identify and prevent electricity theft, ensuring that utilities recover revenue for all energy
consumed.

As reported by the utilities of the State of Gujarat, the smart meter installations are currently in its initial
implementation phase and complete saturation of divisions are under progress. The improvement in the
operational parameters of the Gujarat utilities can be assessed once the saturation in specific areas is
complete.

Government of India (GoI) has been supporting the States/ distribution utilities to improve their
performance through various initiatives. Some of the key initiatives taken are as under:

i. Revamped Distribution Sector Scheme (RDSS) was launched with the objective of improving the
quality and reliability of power through a financially sustainable and operationally efficient
Distribution Sector. The release of funds under the scheme is linked to States/ distribution utilities
taking necessary measures for improving their performance against specified parameters
including the Gap between average cost of supply and average revenue realized i.e. ACS-ARR Gap
and the Aggregate Technical & Commercial (AT&C) losses.

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