Power Sector News Roundup for May 15, 2026

Cabinet approves Rs 37,500 crore coal gasification scheme

The Union Cabinet has approved a Scheme for Promotion of Surface Coal/Lignite Gasification Projects with a financial outlay of Rs 37,500 crore to support India’s target of gasifying 100 Million Tonnes (MT) of coal by 2030. The scheme targets gasification of around 75 million tonnes of coal and lignite, with incentives capped at 20% of plant and machinery costs and Rs 5,000 crore per project. The government has also extended coal linkage tenure to 30 years under the Non-Regulated Sector (NRS) linkage auction framework. The scheme is expected to mobilise investments of Rs 2.5-3.0 lakh crore and generate around 50,000 direct and indirect jobs.

Non-fossil sources account for 53.6% of India’s installed power capacity

India’s total installed power generation capacity reached 537,264 MW as of April 30, 2026, with non-fossil fuel-based sources accounting for 53.61% of the total, according to Central Electricity Authority (CEA) data. Non-fossil capacity stood at 288,035 MW, including 227,591 MW from renewable energy sources and 8,780 MW from nuclear power, while fossil fuel-based capacity remained at 249,229 MW. Solar power continued as the largest renewable contributor with 154,236 MW, followed by wind at 56,437 MW. Renewable energy additions during April 2026 reached 4,317.16 MW against 207.5 MW of conventional power additions.

CEA proposes phased increase in DISCOM fixed charges

The Central Electricity Authority (CEA) has proposed a phased increase in electricity fixed charges to better align retail tariffs with the fixed costs incurred by distribution companies (DISCOMs). According to the report, fixed costs account for 38% to 56% of a DISCOM’s Annual Revenue Requirement (ARR), while fixed charges currently contribute only 9% to 20% of tariff revenue across sampled states. The CEA recommended increasing fixed-cost recovery for domestic and agricultural consumers to 25% by 2030 and 50% by 2035, while industrial, commercial and institutional consumers would recover 100% of fixed costs through fixed charges. The report also proposed standardisation of two-part tariffs and transition to kVAh billing for consumers above 50 kW.

NTPC declares commercial operation of 62.5 MW Rajasthan solar capacity

NTPC Limited has declared commercial operation of 62.5 MW of solar capacity in Rajasthan through step-down subsidiaries of ONGC NTPC Green Private Limited. The commissioning includes 12.5 MW under a 150 MW project owned by Project Eleven Renewable Power Private Limited and 50 MW under a 300 MW project owned by Project Sixteen Renewable Power Private Limited, both effective May 15, 2026. Following the additions, NTPC Group’s total installed capacity has increased to 89,868 MW, while commercial capacity stands at 88,788 MW. NTPC Green Energy Limited (NGEL) stated that its group commercial capacity will rise to 10,516.40 MW after the latest commissioning.

Fujiyama commissions 2,000 MW solar panel line at Ratlam plant

Fujiyama Power Systems Limited has commissioned a 2,000 MW solar panel manufacturing line at its Ratlam facility in Madhya Pradesh as part of a larger greenfield expansion project. The company said the line will initially operate at around 1,000 MW annualised capacity under a single-shift schedule, with full utilisation expected by Q4 FY27 through double-shift operations. Following the commissioning, Fujiyama’s total solar panel manufacturing capacity has increased to 3,568 MW. For FY26, the company reported revenue from operations of Rs 26,545 million and profit after tax of Rs 3,041 million.

Jyoti Structures signs Sri Lanka transmission JV with Hayleys Fentons

Jyoti Structures Limited has signed a contract agreement with National Transmission Network Service Provider (Private) Limited (NTNSP) under the Mullikulam Wind Power Transmission Project in Sri Lanka through a joint venture with Hayleys Fentons Limited. The project involves construction of a 28 km, 220 kV double-circuit transmission line from Mannar GS to Mullikulam Collector Grid Substation. The contract is valued at around Rs 67.96 crore and has an execution timeline of 18 months. The project strengthens Jyoti Structures’ presence in overseas transmission infrastructure markets.

Atlanta Electricals debarred by Bihar utility; disputes test findings

Atlanta Electricals Limited has been debarred by South Bihar Power Distribution Company Limited (SBPDCL) from participating in its tenders for two years following a dispute over transformer testing results. The issue relates to a FY2023-24 order for four units of 10 MVA, 33/11 kV ONAN power transformers valued at less than Rs 3 crore. The company stated that the transformer passed all major short-circuit test parameters at Central Power Research Institute (CPRI), Bhopal, but objections were raised during internal inspection after testing. Atlanta Electricals has disputed the findings, sought reconsideration and stated that the debarment applies only to Bihar State Power Holding Company Limited tenders.