New Delhi: Union Power Minister Manohar Lal on Tuesday said there has been no shortage of electricity in the county in the past two months and India is emerging as an energy surplus nation.
Addressing a press conference on completion of 11 years of Modi 3.0 government, the minister said the average electricity supply in rural areas increased from 12.5 hours (2014) to 22.6 hours (2025), with urban areas reaching 23.4 hours.
Power deficit was 0.1 per cent as of April 2025. This marks a “monumental improvement” from the 4.2 per cent shortage experienced in 2013-14, ensuring greater power availability for all, he said.
Noting that power demand depends on weather conditions, he said India’s peak power demand touched 241 GW (on June 9) during this summer season, while last year peak power demand was at record high of 250 GW on May 30, 2024.
He also noted that during this summer season peak power demand can touch 270 GW.
So far, peak power demand has been lower than the projected 270 GW, as unseasonal rains in May reduced the use of cooling appliances like desert coolers and air conditioners.
Power consumption in India dipped over 4 per cent to 148.71 billion units in May 2025, compared to the same month a year ago, due to the early arrival of the monsoon and unseasonal rains.
Official data showed that power consumption in May 2024 was 155.15 billion units.
Speaking further, the minister also announced a slew of measures for the power sector to improve transmission and development of projects including the rollout of ultra-high voltage alternating current (UHV AC) transmission systems.
He said nine lines of 1,100 kV have been identified for development by 2034. Testing facilities for these lines and equipment are being developed by Central Power Research Institute. It would require investment of around Rs 53,000 crore.
The Ministry has approved a Viability Gap Funding scheme to develop 30 GWh of BESS (battery energy storage system) in addition to the 13.2 GWh currently under implementation. This will cost Rs 5,400 crore.
This will help in meeting the country’s BESS requirement of 2028 and attract an investment of about Rs 33,000 crore, he said, adding tenders are expected to be floated in the next three months.
Lal said the waiver of inter-state transmission charges for storage projects have been extended until June 30, 2028, and pumped storage projects awarded and BESS projects commissioned before this date will be eligible for the benefit.
This extension will support the development of storage needed to meet the country’s requirements, he said.
The government has also increased the compensation paid to land owners for laying transmission lines. Compensation for tower area increased from 85 per cent to 200 per cent of land value and for right of way (RoW) corridor from 15 per cent to 30 per cent of land value.
Compensation has been linked to the market value of land.
The payments to Intra-State Transmission Systems have now been brought under the scope of the Late Payment Surcharge (LPS) rules, along with Inter-State Transmission Systems. This move will attract greater private investment in the expansion of Intra-State Transmission Networks, he said.
Speaking on achievements of his government, Lal said total electricity generation grew annually by 5.2 per cent in 2024-25. It increased from 1,739 BU (FY24) to 1,829 (FY25).
The total installed generation capacity in the country is 475 GW (March 2025), compared to 249 GW (2014).
The coal stock at thermal power plants is comfortable at 57.5 million tonnes (May 31, 2025), compared to 44.7 MT (June 30, 2024).
Imported coal for blending was reduced from 24 MT (FY24) to 14 MT (FY25).
The country has a total transmission network length of 4.95 lakh ckm now, which will be expanded to 6.48 lakh ckm by 2032.
On storage projects, he said about 5.4 GW has been awarded taking the PSPs under implementation to 10 GW (eight projects). Additionally 2.5 GW (two projects) are under bidding.
Approved development of 13.2 GWh BESS in various States under Viability Gap Funding (VGF) Scheme. Tendering process for 6.7 GWh has been concluded and 3 GWh has been awarded.
The ministry informed that the distribution utility of Chandigarh was successfully privatized in February 2025.
In distribution, 19.8 crore smart meters, 52.5 lakh Distribution Transformers and 2.1 lakh feeder meters have been sanctioned under the Revamped Distribution Sector Scheme (RDSS).
While around 2 crore smart meters have been installed under RDSS and overall more than 3 crore smart meters have been installed across India under various schemes.
So far, projects worth Rs 1.31 lakh crore for smart metering works, and Rs 1.52 lakh crore for strengthening distribution network have been sanctioned. Overall 28 per cent physical progress has been achieved.
As a result, Aggregate Technical and Commercial (AT&C) losses have declined from 22 per cent (FY21) to 16 per cent (FY24).
Unrealised cost per unit of electricity supplied has reduced from 71 paise (FY21) to 19 paise (FY24).
