Page 51 - Policy Economic Report - July 2025

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

ii. Allowing additional borrowing space of 0.5% of GSDP to the State if the distribution utility
implements loss reduction measures.

iii. Additional Prudential Norms have been specified for sanctioning of loans to State owned Power
Utilities which is contingent on performance of Power Distribution Utilities against prescribed
parameters.

iv. Rules for implementation of Fuel and Power Purchase Cost Adjustment (FPPCA) and cost reflective
tariff to ensure all prudent costs for supply of electricity are passed through and are timely
realised.

Above reform measures are to be implemented by States/ distribution utilities as a whole including Tier-
II and Tier-III towns falling under the utility area. As a result of reform measures undertaken, the AT&C
losses of distribution utilities at the national level have reduced from 21.91% in FY21 to 16.12% in FY24
and ACS-ARR Gap from Rs 0.69/ kWh in FY21 to Rs 0.19/ kWh in FY24.

SECI crossed milestone of 60 GW of Power Sale Agreements for Renewable Energy Projects, paving the
way for India’s Clean Power Transition

The Solar Energy Corporation of India Limited, a Navratna Central Public Sector Enterprise under the
Ministry of New and Renewable Energy, Government of India, has achieved the milestone of executing
over 60 Gigawatts (GW) of Power Sale Agreements (PSAs) of Renewable Energy (RE) capacity. This marks
a pivotal step in the nation’s progress toward a clean and sustainable energy future and indicates the
positive trend of uptake of renewable energy across the country.

The Power Sale Agreements cover a diverse portfolio of solar, wind, and hybrid energy projects,
collectively representing a significant share of India’s rising RE capacity. Through these agreements, SECI
guarantees long-term purchase of power generated, providing payment security to developers and
investors while demonstrating the viability of renewable energy ventures in the country. Such long-term
arrangements are critical to unlocking the full potential of India’s RE sector. By securing off take for
renewable power, SECI strengthens the renewable energy market, attracting developers and financial
stakeholders, and facilitating the flow of capital for India’s low-carbon economy.

Shri Santosh Kumar Sarangi, Chairman and Managing Director of SECI, stated "The signing of 60 GW worth
of Power Sale Agreements within just fourteen years of establishment marks a pivotal moment for SECI’s
journey. SECI continues to be at the forefront of ensuring that India stays on track to meet its ambitious
clean energy targets. We are proud to contribute to the nation’s transition towards a sustainable and low
carbon future."

Future initiatives will focus on innovative energy storage solutions, strengthening the RE supply chain,
advancing the production of green hydrogen and green ammonia, as well as innovative power supply
models. These efforts will accelerate the renewable energy transition and support India’s climate
commitments.

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