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India's power sector is positioned for a sustained growth trajectory with a medium-term forecast set at a 5-6 per cent CAGR, supported by the convergence of electrification, data centers, cooling loads, and manufacturing sectors. According to a Citi Research report, the country is currently witnessing its first-ever multi-vector capital expenditure upcycle that spans thermal, renewables, transmission, and grid storage. View More
New Delhi: India's power sector is positioned for a sustained growth trajectory with a medium-term forecast set at a 5-6 per cent CAGR, supported by the convergence of electrification, data centres, cooling loads, and manufacturing sectors. According to a Citi Research report , the country is currently witnessing its first-ever multi-vector capital expenditure upcycle that spans thermal, renewables, transmission, and grid storage. "Our medium-term forecast is set at a 5-6% CAGR on the strength of electrification, data centres, cooling load, and policy-supported manufacturing sectors," the report stated. Also read: India's power demand to rise by 5 to 5.5 percent in FY27: ICRA The Citi report highlighted that this investment phase remains a visible, multi-year story as the breadth of power demand continues to expand across the nation. Unlike previous cycles driven by single factors, this broad-based upcycle draws strength from multiple load vectors, which provides greater visibility and sustainability to the ongoing momentum. "India's first-ever multi-vector capex upcycle - straddling thermal, renewables, transmission, and grid storage - continues to chug along," the report said. Live Events The regulatory environment is shifting its focus from mere capacity addition to ensuring system reliability and flexibility. Favourable policies and structural frameworks, such as the Central Electricity Authority (CEA) resource adequacy guidelines and long-term transmission plans, serve as anchors for this phase. Incremental drivers like deeper electrification and the first meaningful wave of grid storage are necessitating sharp rebounds in thermal and transmission infrastructure. Also read: Power prices hit regulatory ceiling as heatwave drives demand "Regulators' focus has pivoted from capacity to reliability/flexibility, and favorable policies are providing greater visibility," the report mentioned. The report suggested a significant ramp-up in generation capacity. GENCO capacity additions between FY26 and FY32 are expected to be 2.3 to 2.5 times higher than the levels seen between FY19 and FY25. This surge is necessary to address the time-of-day sensitivity of demand and supply dynamics as the energy mix evolves. "GENCO capacity additions over FY26E-32E will be 2.3-2.5x those of FY19-25 levels, on our estimates, backed by the requirement to meet time-of-day sensitivity of demand-supply dynamics," the report added. While growth in power demand showed some deceleration over the last two years, the report suggested that headline deficits often mask specific strains occurring during non-solar hours. Also read: India is blocking a cheap way to beat the heat wave, one tweak in AC can lower costs Looking toward 2026, the report highlighted that the sector may see tailwinds linked to El Nino, which typically increases demand for agricultural pumps and cooling systems. "While power-demand growth has decelerated over the past two years, headline power deficits mask non-solar-hour strains....and in 2026 we see El Nino-linked tailwinds (boosting agri-pump and cooling demand)," the report clarified. Citi noted that the system is now prioritising the mitigation of non-solar-hour power strains, a risk flagged by the CEA for the next two years in instances where capacity additions slip or demand surprises. Furthermore, progress on reforms within the draft National Electricity Policy 2026 is expected to provide additional support to demand. "Although power-sector stocks have re-rated in the past month on a power-demand pickup, we believe they still have upside potential," the report stated. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
The article describes India’s economy as “resilient” amid the West Asia crisis, highlighting the country’s ability to maintain stable fuel prices despite a sharp global rise in crude oil prices. It credits strong domestic demand, expanding refining capacity, renewable energy growth and government intervention for insulating consumers from global energy shocks. View More
India, its GDP growth recalibrated by IMF in its spring meeting at 6.5%, projecting a robust economy, a momentum owning to its strong domestic demand and minimal impact on productivity, inspite of the West Asia crisis can be defined in one word- ‘Resilience’. In a world where trade is weaponized, supply chains fragile, India’s Energy economy stands firmly, ensuring as an available (affordable) energy. The ecosystem being built visibly in the last decade, with the clear vision of Hon PM towards a Viksit Bharat of 2047. This resilience is an outcome of direction and determination, of good governance, built with the objective of Atmanirbhata which in the crisis of today provided the much needed shock absorber in the economy. The fact that India can meet its peak power demand (of over 256GW) with 23% renewables in the grid, green its Gasoline with 20% ethanol, stabilize and ensure LPG supplies continue to 33.5 crore households, ensure each Gasoline or Diesel vehicles are fueled up at Retail Outlets, is an outcome of well structured policies and multipronged strategies ably executed by the Oil Sector Companies. The country’s wide network of more than 77,000 RO’s operating like a 24x7 factory, forming the nerve centers for fuel availability. This has been made possible with India’s world class refining capacity of 258MMTPA (to go above 300MMTPA up from 215MMTPA in 2014) , the country being a net exporter of several Petroleum Oil Products, has provided the much needed buffer for supplies. Crude markets being deeper, always reaffirms my belief, that growing refinery capacities have more insulating power from vagaries of pricing and political outcomes for our country. While it keeps the engineering and project implementing capabilities strong, it also oils our manufacturing machinery thereby Making In India and generating employment. The Indian Refineries with world class configurations and meeting international product specifications several operating above their nameplate capacities, incessantly meeting energy demand while bearing the strain on the increasing crude costs and stress on compressed margins are thoroughbreds. In the last couple of years, Several refineries have commissioned technologies, increased their Complexities (compares them to the world’s best), thereby enhance volumes of Gasoline and Diesel produced in the country. What India has achieved today, as a result of the energy supply shock, is a far distance from expectations of an importing country. Other importing Asian countries like Singapore, Hong Kong, South Korea, Japan as well as EU regions like Italy, Norway, Germany, The Netherlands and Spain ( where the Gasoline price rise of 34% is steepest in EU) have retail prices of about 70 -300 % above what a consumer pays in Delhi for one litre of Gasoline. Live Events A comparison of increase in prices of Petrol and Diesel in a few countries is as follows: Petrol (Rs/Ltr)Diesel (Rs/Ltr)CountryMay 26Feb-26(%)May 26Feb-26(%)Pakistan136.8483.1465136.7488.1355Sri-Lanka122.6586.3342117.2681.8943Nepal136.4897.6040141.5185.0966Bangladesh105.7387.342190.0675.2920USA119.5577.7254141.7188.2361Italy213.49177.4820228.24182.8725Spain171.93156.6510193.65151.5328Germany223.67188.2419231.35184.3625France223.36181.5123240.30180.0133India (Delhi)94.7794.77-87.6787.67- This is the fall out of last two months, when the Strait of Hormuz, through which roughly twenty per cent of the world’s daily crude transit passes, has been functionally closed to commercial shipping. This pricing is on the backdrop of the OPEC reference basket for crude nearly doubling month on month. Brent crude touched a peak of approximately 126$/BBL in mid-March, against a pre-crisis baseline near 70$/BBL. By every market signal that economists watch and the way other countries responded, the Indian retail fuel price ought to have moved sharply upwards. ET Bureau Figure 1-Crude price fluctuation since the start of war More than 120 countries witnessed fuel price increases as geopolitical tensions disrupted global energy supply chains. From advanced economies to developing nations, governments passed on the burden of higher crude costs to consumers through increased petrol, diesel and aviation fuel prices. Several countries even resorted to rationing and emergency fiscal interventions to stabilize domestic markets. India, however, chose a different path. Petrol and diesel prices remained unchanged, LPG supplies continued uninterrupted for over 33.5 crore households, and aviation turbine fuel prices were held steady. The Indian state, along with its public sector oil companies, consciously absorbed extraordinary pressure across the energy value chain to protect citizens from imported inflation and preserve macroeconomic stability. However, India has held the price point as on 28th Feb for the consumer, however this creates a cost gap to be filled in the entire value chain of well to wheel by some interventions at some point in time. Although the reason this gap exists is straightforward, the underlying mechanics must be understood. On 27 March, with crude pulling sharply through the global pricing formulas, the GOI took two decisions; one, it imposed a temporary export levy on diesel and aviation turbine fuel, keeping the pipeline of domestic market supply intact, and two, reduced excise duty on petrol from Rs 13/L to Rs3/L, and exempted Diesel altogether from excise levy. In doing this the GOI played the much-needed shock absorber for under-recovery, insulating the consumer, the pricing mechanism which would have otherwise warranted and increase. Countries have across the globe put in place several measures, Spain has rolled out a 5Billion Euro crisis package and cut value-added tax on energy from 21% to 10%. South Korea has imposed a fuel price cap and is reviewing naphtha export limits. Japan has released 80million barrels from its strategic petroleum reserve. In doing so while protecting the consumer to a limit, neither of them has succeeded in holding the retail pump price flat. In comparison , India being the 5th largest Refiner and the 3rd largest consumer of Oil Products, having held consumer prices flat, doing exceeding well in containing inflationary impact on economy definitely needs to balance out somewhere. While the world awaits the signing of the 14 point , one page MOU between the USA and Iran, energy flows continue to happen, despite their the costs, new suppliers open up, ships move to the Gulf of Mexico, the Permian works overtime paying off-takers of gas, and the flow of energy is in continual flux. What does all this mean for the Indian Oil Companies? While they grapple for the right terms for securing Crude, LPG and LNG, their show has to go on. Two imperatives remain , one we have to build more strategic reserves for meeting our needs, current reserve of 5.33 million barrels is being and needs to be further expanded. Distributed storages for LPG, which is being enhanced to about 30 days, are needed. And second, the renewable momentum has to accelerate, fact being that in comparison to the 1970 Oil shock, the Oil out of the market remained same as in the current crisis, but it was the renewables which saved the day for India and several others as well with lower impacts on economies. As more Oil Barrels come in the market, more projects declare CODs, Green technologies increase their viability, India looks as its own energy power balance, the fact remains that there a cost to everything produced and compensating an enterprise for it is only fair. So while the Indian consumer in the crisis of today is protected, the very backbone of self -reliance, the Oil and Gas Companies need mechanisms such that are able return value to its shareholders equally needed. (The writer is Former Chairman & Managing Director-Engineers India Limited) .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Indian oil companies face significant monthly losses on petrol, diesel, and LPG. This is due to selling fuels below international rates, which have risen sharply. While some fuel prices have increased, regular petrol and diesel prices remain unchanged. This situation is impacting the earnings of Indian Oil, HPCL, and BPCL, with their shares seeing a decline. View More
State-run oil marketing companies are incurring combined under-recoveries of about ₹30,000 crore per month on petrol, diesel and LPG, a petroleum ministry official said on Friday. Indian Oil , Hindustan Petroleum and Bharat Petroleum are selling fuels in the domestic market below international benchmark rates, which have surged following the outbreak of the Iran war. Sujata Sharma, a joint secretary at the petroleum ministry, did not provide a fuel-wise or month-wise break-up. Under-recovery refers to the gap between domestic retail prices and prevailing global benchmark rates for fuels. For companies, however, this does not necessarily translate into a cash loss, which depends on crude procurement costs and domestic selling prices. Crude procurement costs have also surged due to the war, likely putting pressure on the earnings of oil marketing companies as prices of regular petrol and diesel remain unchanged. Shares of Indian Oil, HPCL and BPCL have fallen 12-23% since the outbreak of the war on February 28. The companies have raised prices only selectively. Rates of premium petrol, bulk diesel, commercial LPG and aviation turbine fuel (ATF) for international flights have been sharply increased in line with global trends. Live Events However, retail prices of regular petrol and diesel have remained unchanged. ATF prices for domestic airlines have been only partially increased, while LPG prices have gone up by ₹60 per 14.2-kg cylinder. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Contract covers balance of system package for two blocks in Bikaner with three-year O&M and 10-year AMC View More
India's state-run oil firms faced massive losses of an estimated Rs 30,000 crore. They kept fuel and LPG prices stable despite a global energy disruption. This ensured uninterrupted supplies for consumers. The government's excise duty cuts helped mitigate further losses. India's approach differed from other nations where fuel prices surged. View More
New Delhi: India's state-run oil marketing companies have bled an estimated Rs 30,000 crore in losses since mid-March as they kept fuel and LPG supplies flowing without raising retail prices despite facing an energy disruption that is bigger than all previous crises combined. Indian Oil Corporation Ltd (IOC), Bharat Petroleum Corporation Ltd (BPCL) and Hindustan Petroleum Corporation Ltd (HPCL) have maintained uninterrupted supplies of petrol, diesel, LPG, aviation turbine fuel and other petroleum products since the start of the West Asia conflict, without raising retail prices despite a more than 50 per cent surge in input costs. Also Read: Petrol-diesel price hike coming soon? Why IMF says it must Their supply networks were stretched to the limit, as panic buying triggered a sharp spike in demand after the war disrupted traffic through the Strait of Hormuz, a key route for the majority of India's energy imports. Yet there was no dry out or price increase. In doing so, the three companies together incurred an estimated Rs 30,000 crore in under-recoveries - the gap between input costs and realised retail prices - since mid-March, two sources with direct knowledge of the matter said. Live Events This loss would have swelled to nearly Rs 62,500 crore had the government not cut excise duty on petrol and diesel by Rs 10 per litre each, they said. Brent crude - the world's most traded oil benchmark - was hovering around USD 72 per barrel before the United States and Israel launched strikes on Iran on February 28, triggering a sharp escalation in West Asia tensions. Prices then surged as the conflict widened and shipping risks intensified in the Strait of Hormuz, with reports of disrupted tanker movement and heightened supply fears. Also Read: Petrol, diesel price hike in near future not ruled out, say govt sources At the peak of the escalation, Brent briefly jumped to levels near USD 144 per barrel as Iran retaliated and closed the Strait, effectively freezing parts of global oil transit and amplifying volatility across energy markets. Sources said the government intervention included excise duty reductions and absorption of part of the fuel cost burden. The Centre's effective absorption at peak crude prices was estimated at around Rs 24 per litre for petrol and Rs 30 per litre for diesel. The special additional excise duty on petrol was cut to Rs 3 per litre from Rs 13, while excise duty on diesel was reduced to zero from Rs 10 per litre. Retail fuel prices in India have remained unchanged since February 28 despite the sharp rise in global crude prices, they said. Daily under-recoveries during April were estimated at about Rs 18 per litre on petrol and Rs 25 per litre on diesel, translating into average losses of Rs 600-700 crore a day for OMCs, they noted. The companies also faced additional costs from emergency crude sourcing, higher freight charges due to vessel diversions, elevated marine insurance premiums and refinery optimisation expenses. Despite these pressures, fuel and LPG supplies remained uninterrupted across the country. The surge in crude prices and the decision to shield consumers from higher retail prices placed significant strain on OMC balance sheets and refining margins, sources said. They added that the measures reflected a policy decision to prioritise consumer stability and economic continuity during a global energy shock. Sources warned that a prolonged period of elevated crude prices could lead to higher working capital borrowings and force some recalibration of capital expenditure plans. However, investments linked to refining expansion, energy security infrastructure, ethanol blending, biofuels and transition fuels would continue with government backing, they said. India's approach contrasted with measures adopted by several other economies, where fuel prices rose sharply after the conflict-driven energy shock. Petrol prices increased by about 34 per cent in Spain, 30 per cent in Japan, Italy and Israel, 27 per cent in Germany and 22 per cent in the United Kingdom, according to the estimates. Several countries also introduced rationing, conservation advisories, emergency relief packages or fuel caps. In India, petrol prices remained Rs 94.77 per litre and diesel at Rs 87.67, with no rationing, mobility restrictions or supply disruptions, they added. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)
Thermax shares surged 14% to ?4,759 after a strong March quarter, with an 18% profit increase to ?244 crore. FY26 revenue rose 3% to ?10,694 crore, with a 27% increase in order balance. The company also announced dividends totaling ?20 per share. View More
The company posted a consolidated profit after tax of Rs ?244 crore for the fourth quarter ended March 31, 2026. Consolidated operating revenue rose 13% to Rs ?3,428 crore from Rs ?3,046 crore a year earlier View More
Indian stocks closed largely unchanged on May 7, after early gains, influenced by profit booking despite easing tensions between the US and Iran. Broader market indices like Nifty Midcap 100 and Nifty Smallcap 100 showed gains, while sector performance was mixed. View More
India's power demand is set for a significant rise of 5.0-5.5 percent in 2026-27. This growth will be fueled by industrial, commercial, agricultural, and household sectors. Emerging sources like electric vehicles and data centers will also contribute. Thermal plant utilization will stay steady. Distribution companies face challenges with high debt and muted tariff hikes, impacting their profitability. View More
New Delhi: Rating agency ICRA on Thursday said power demand will rise by 5.0-5.5 per cent in 2026-27 as against a tepid one per cent growth in 2025-26, supported by continued momentum in industrial and commercial activity. The country's power demand growth in 2026-27 is likely to be supported by agricultural and household sectors given the expectation of sub-par rainfall amidst a potential El Nino, along with demand from industries as well as from emerging sources like electric vehicles and data centres, ICRA said in a statement. The all-India thermal plant load factor (PLF or capacity utilisation) level fell to 65-66 per cent in 2025-26 amid demand moderation and is likely to remain around 65 per cent in 2026-27, given the healthy growth in generation expected from the renewable sources and 6-GW capacity addition likely in the thermal segment. Ankit Jain, Vice President & Co-Group Head - Corporate Ratings, ICRA, said in the statement that the thermal power sector in India is witnessing a revived investment emphasis, even as the renewable capacity continues to expand at a rapid pace. Thermal power acts as a reliable base-load supply, aiding grid stability, amid expectations of power demand growth, he said, adding that the coal stock level for the domestic power plants has been comfortable at around 19 days as on April 8, 2026. Live Events The book losses of the distribution companies at the all-India level improved in 2024-25 over 2023-24. The gross debt for state-owned discoms reduced to Rs 7.1 trillion as of March 2025 from Rs 7.4 trillion as of March 2024, it stated. However, such high debt levels are unsustainable for discoms, given their current revenues and profitability, it pointed out. The tariff orders for 2026-27 have been issued in 17 out of 28 states as of April 2026, it noted. Despite the loss-making operations of discoms, tariff hikes approved for 2026-27 remain muted across most states, it pointed out. ICRA expects the cash gap per unit for the discoms at the all-India level could remain high at 30-33 paise per unit in 2026-27 in case of limited tariff hikes and increased power purchase costs amid addition of relatively higher tariff-based capacities, it stated. ICRA's outlook for the power distribution segment remains Negative amid limited tariff hikes and continued loss-making operations, it stated. .Pbanner{display:flex;justify-content:space-between;align-items:center;background-color:#ec1c40;margin-top:20px;padding:5px 10px;border-radius:4px;color:#fff;line-height:10px;} .Pbannertext{display:flex;align-items:center;font-size:16px;font-weight:600;font-family:'Montserrat';} .Pbannertext img{height:20px;margin:0 6px} .Pbannerbutton a{display:flex;align-items:center;background-color:#fff;color:#ec1c40;text-decoration:none;font-weight:600;padding:4px 8px;border-radius:6px;font-size:15px;font-family:'Montserrat';} .Pbannerbutton img{height:20px;margin-right:6px} .Pbannerbutton a:hover{background-color:#f7f7f7} Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) (You can now subscribe to our Economic Times WhatsApp channel)