By Gautam Debroy
New Delhi: Stating that India’s peak power shortage is zero as of now, Union Power Minister Manohar Lal on Tuesday said that in June 2025, a peak demand of 241 GW was met.
"India successfully met an all-time maximum power demand of 250 GW (May 2024) compared to 130 GW (2014). In June 2025, a peak demand of 241 GW was met. Peak shortage is zero as of now,” said Manohar Lal.
The power minister was highlighting 11 years of transformative growth in the power sector in a press conference. He said that due to significant additions in generation and transmission capacities, energy shortages at the national level have reduced to a mere 0.1 per cent (April 25), a major improvement from 4.2 per cent (2013-14).
"It is our goal to make power accessible to everyone and at all times and the government is aiming for 100 per cent electrification of households across the country. India has become power sufficient meeting all its power demands and well on the path of power surplus country,” he said.
Manohar Lal announced that in a massive push for energy security and renewable integration, the power ministry has approved a Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS), in addition to the 13.2 GWh already underway.
"This Rs 5,400 Crore scheme aims to attract Rs 33,000 crore in investment, meeting the country’s BESS requirement by 2028," he said.
He said that the waiver of Inter-State Transmission System (ISTS) charges for storage projects has been extended until 30th June, 2028, benefitting Pumped Storage Projects awarded and Battery Energy Storage Systems commissioned before this date. "This extension is crucial for meeting India's growing storage needs and optimising the utilisation of transmission lines," he said.
Manohar Lal said that India is set to revolutionise its power transmission with the rollout of an Ultra High Voltage Alternating Current (UHV AC) Transmission System. "Nine 1100 kV lines and ten substations have been identified for development by 2034, with testing facilities under development by the Central Power Research Institute. Investment would be Rs 53,000 crore,” he said.
Coal Stock Position
He said that the coal stock at thermal power plants is comfortable at 57.5 Million Tons (May 31, 2025) compared to 44.7 MT (June 30, 2024). "Imported coal for blending was reduced from 24 MT (FY 24) to 14 MT (FY 25). Did not extend advisory to blend coal beyond October 15, 2024. Captive coal production increased from 117 million tons (FY 24) to 153 million tons (FY 25).
Compensation for Power Transmission Lines Increased
Manohar Lal said that the Centre has increased the compensation for land used in laying transmission lines to ease the Right of Way issues. "Compensation for the tower area has jumped from 85 per cent to 200 per cent of the land value, and for the Right of Way (RoW) corridor from 15 per cent to 30 per cent, directly linking land value to market rates. Haryana and Delhi have already adopted the new guidelines issued on March 21, 2025,” he said.
Private Investments in State Transmission Grids
In a move set to attract more private investment and ensure financial discipline, the Late Payment Surcharge (LPS) Rules have been expanded to include Intra-State Transmission Systems. This crucial reform, previously applied only to Inter-State Transmission Systems, aims to expand the Intra-State Transmission networks to absorb Renewable Electricity.
34 GW Generation Capacity in FY25
Manohar Lal said that in an unprecedented feat, India added its highest-ever generation capacity of 34 GW during 2024-25, with renewable energy accounting for 29.5 GW. The nation's total installed capacity now stands at 472.5 GW, up from 249 GW in 2014.
North Eastern States
For the North Eastern States, a Scheme for Central Financial Assistance (CFA) towards equity participation by State Governments for the development of hydro-electric projects was approved in August 2024, to support the development of 15 GW of hydro capacity.
“These States would be provided up to Rs 750 Cr per project (24 per cent of project cost) as CFA towards equity. This will cost Rs. 4136 crores. The scheme period is till 2032,” Manohar Lal said.
