India Cabinet Approves Power Sector Reforms To Boost Efficiency And Sustainability

India’s power sector is set for a major transformation as the Union Cabinet has cleared key reforms designed to modernize infrastructure, improve financial viability, and accelerate renewable adoption. The announcement underscores the government’s commitment to building a sustainable and resilient energy framework that can meet rising demand while reducing dependence on conventional sources.  

Key Highlights  

• Cabinet approves reforms under Draft National Electricity Policy 2026  
• Focus on tariff rationalisation to ensure affordable power for consumers  
• Expansion of renewable energy capacity to meet climate commitments  
• Grid modernization and digital upgrades to improve reliability and efficiency  
• Measures aligned with Viksit Bharat 2047 vision of energy independence  
• Reforms expected to enhance per capita electricity consumption and support 24x7 supply  

Strategic Impact  
The approved reforms mark a significant milestone in India’s energy transition. By prioritizing renewable expansion and grid efficiency, the government aims to balance economic growth with sustainability. Analysts note that tariff rationalisation will improve financial health of distribution companies, while modernization efforts will strengthen India’s position as a global leader in clean energy. The reforms are also expected to attract private investment, boost employment, and ensure long-term energy security.  

Sources: The Week, Vajiram & Ravi, Tata Power, Press Information Bureau