BS EDIT: Power reforms: New policy aims to address fault lines

By Business StandardPublished On Jan 23, 2026

FROM SCARCITY TO SCALE

India now has over 500 GW capacity and near-zero shortages, but structural weaknesses persist

TARIFFS AT THE CORE

Political pricing, delayed orders and welfare tariffs have left discom debt above ₹7.1 trillion

AUTOMATIC TARIFF RESET

Indexed, automatic tariff revisions aim to restore cash flow discipline and reduce bailouts

REINING IN CROSS-SUBSIDIES

High industrial tariffs hurt competitiveness; gradual subsidy reduction is long overdue

ENERGY TRANSITION CHALLENGE

Rising renewables require storage, flexible thermal power and stronger grid planning

REFORM VS POLITICAL REALITY

Multiple suppliers and PPPs promise efficiency, but politics may slow implementation