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Factories flip the switch on power bills: Cheapest energy in 20 years

Renewables and captive plants cut costs below 2% of sales

Wind sector, wind power, wind energy
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The trend extends beyond the manufacturing segment. For 4,184 non-financial companies as a whole, power and fuel expenses are also at a two-decade low, standing at 1.66 per cent of net sales in the April-June quarter.

Sachin P Mampatta Mumbai

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High energy costs, long a drag on India’s manufacturing competitiveness, are finally easing. Power and fuel expenses accounted for 1.98 per cent of net sales in 2024–25, the lowest level in data compiled by the Centre for Monitoring Indian Economy (CMIE) over the past two decades. The April-June 2025 quarter saw an even lower figure of 1.92 per cent.
Advances in technology, conservation measures, and firms investing in their own power generation units are among the reasons for the decline. 
“Solar and wind cost ₹3–4 per unit,” said Mahesh Bendre, fund manager at LIC Mutual Fund, noting that many firms are