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- India successfully met peak power demand of 241 GW on 9th June, 2025 with zero peak shortage: Shri Manohar Lal
- MoHUA issues Advisory for Repurposing of Smart City SPVs
India successfully met peak power demand of 241 GW on 9th June, 2025 with zero peak shortage: Shri Manohar Lal
Context : India’s power sector has witnessed a historic transformation, marked by record capacity additions, enhanced grid reliability, and a strong push towards renewable integration. The recent announcements by Union Minister Shri Manohar Lal highlight India’s emergence as a power-surplus nation with a future-ready energy infrastructure.
Relevance : GS 3(Energy)
Peak Power Demand Met with Zero Shortage
- India successfully met a peak power demand of 241 GW on 9th June 2025.
- No peak shortage recorded — highlights the robustness and reliability of the current grid infrastructure.
- Indicates India’s transition towards a power-surplus nation.
Historic 34 GW Generation Capacity Added in FY 2024-25
- Record addition of 34 GW, of which 29.5 GW came from renewable sources.
- Total installed power capacity rose to 472.5 GW (from 249 GW in 2014).
- Reflects the government’s strong focus on clean energy and infrastructure scaling.
Push for Battery Storage: 30 GWh VGF Scheme
- Approval of a Rs 5,400 Cr Viability Gap Funding (VGF) scheme for 30 GWh of Battery Energy Storage Systems (BESS).
- Aims to catalyse Rs 33,000 Cr in private investments.
- Complements India’s target of meeting BESS needs by 2028.
ISTS Waiver Extended for Storage Projects
- Waiver on Inter-State Transmission System (ISTS) charges extended to June 30, 2028.
- Applies to Pumped Storage Projects (PSPs) and BESS commissioned before the date.
- Encourages faster deployment and cost-effective storage infrastructure.
Ultra High Voltage AC Transmission by 2034
- Rollout of UHV AC Transmission System to modernize India’s grid.
- Plan includes nine 1100 kV lines and ten substations.
- Rs 53,000 Cr investment, testing facilities being developed by Central Power Research Institute.
Increased Compensation for Transmission Infrastructure
- Compensation for land under transmission towers raised from 85% → 200%.
- Right of Way (RoW) corridor compensation raised from 15% → 30%.
- New guidelines issued March 21, 2025; already adopted by Haryana and Delhi.
- Will ease land acquisition and reduce project delays.
Private Investments in State Transmission Grids Encouraged
- Late Payment Surcharge (LPS) Rules now apply to Intra-State Transmission Systems.
- Promotes private sector participation and better payment discipline.
- Supports integration of renewable electricity at the state level.
250 MW Tehri Pumped Storage Project Operational
- Commissioned first unit of 250 MW Tehri PSP in Uttarakhand.
- Adds flexibility to the grid by managing peak loads and supporting renewable integration.
Record Low Energy Shortages
- National energy shortage down to 0.1% as of April 2025.
- Huge improvement from 4.2% in 2013-14.
- Reflects success of power reforms and capacity expansion in both generation and transmission.
Key Takeaways
- India is well on its way to becoming energy-secure and power-surplus.
- Massive renewable integration, grid modernization, and storage expansion define this decade’s power policy.
- Reforms are aimed at reliability, affordability, and sustainability.
MoHUA issues Advisory for Repurposing of Smart City SPVs
Background: Smart Cities Mission & SPVs
- Smart Cities Mission (SCM) launched in 2015 aimed at integrated, technology-driven urban development.
- Established Special Purpose Vehicles (SPVs) in 100 cities under Companies Act, 2013 with 50:50 equity by States/UTs and Urban Local Bodies (ULBs).
- SPVs executed 8,000+ projects with 93% completion as of March 2025; nearly ₹48,000 crore disbursed.
Relevance : GS 3(Infrastructure)
Proven Institutional Strength of SPVs
- SPVs have delivered complex urban projects efficiently and fostered a skilled urban management workforce.
- Developed strong capacities in project planning, execution, and innovation.
ICCCs as Nerve Centres of Urban Governance
- Integrated Command and Control Centres (ICCCs) set up in all 100 Smart Cities.
- Enable real-time governance using data analytics for:
- Traffic and crowd management
- Public safety and disaster response
- Solid waste and utility management
MoHUA Advisory: Two-fold Approach
- Complete residual Smart Cities projects with proper O&M planning.
- Repurpose SPVs for future urban governance beyond the mission deadline of 31 March 2025.
Future Role of SPVs – Five Strategic Domains
- Technology SupportManage ICCCs, data systems, and cyber hygiene.ICCCs to evolve into city/state-level operating hubs.SPVs to earn service-linked revenue.
- Project ImplementationSPVs to act as implementing agencies for Central/State schemes.Allowed to charge 1.5%–3% project implementation fee.
- Consulting SupportProvide technical and strategic advisory to ULBs and departments.
- Research & AssessmentSupport evidence-based planning, logistics, manpower, and act as urban tech incubation hubs.
- Investment FacilitationDrive city-level economic development through project structuring and inter-agency coordination.
Financial Sustainability and Autonomy
- States/UTs encouraged to allow SPVs to charge a ‘Centage’ fee for planning and implementing projects.
- Ensures revenue stream and operational independence post-mission.
Integration into Long-Term Governance
- States/UTs asked to institutionalise SPVs and ICCCs into their urban governance frameworks.
- Objective: Preserve gains and institutional capacities developed under SCM for future urban challenges.
Key Takeaway
India is transitioning from a mission-based urban reform model to a permanent institutional framework, with SPVs as agile, multi-functional engines for next-gen urban transformation.
