Power ministry’s draft policy moots automatic revisions of tariff

NEW DELHI: The power ministry’s draft National Electricity Policy (NEP) 2026, released Wednesday, has proposed an annual reset of tariffs, including an index-linked automatic revision in case the regulator fails to act to ensure sound financial health of power utilities, while seeking to limit cross-subsidies for manufacturing units and railways, in an attempt to make tariffs reasonable.

While underlining that coal-based generation will remain critical, it has backed nuclear capacity addition with the involvement of the private sector and suggested that atomic energy could emerge as a source for captive plants, replacing thermal.