West Bengal budget plans new thermal plant, floating solar and 15 new substations
The West Bengal government has allocated Rs 5,345.16 crore to the Power Department in its 2026-27 budget, outlining a series of thermal power, renewable energy and transmission infrastructure projects to meet rising electricity demand. The budget also earmarks Rs 305.87 crore for Non-Conventional and Renewable Energy Sources and Rs 100 crore for rooftop solar installations.
Rising power demand
The state government said West Bengal’s peak power demand currently stands at 13 GW and is projected to increase to 16 GW within two years and 27 GW by 2035. To meet the expected growth in demand, the budget proposes new generation and network expansion projects.
A 2×800 MW thermal power plant will be developed at Santhaldih under the public-private partnership (PPP) mode. The government also plans to facilitate the development of new thermal power plants by both the state and private sector independent power producers (IPPs) through tariff-based competitive bidding.
Renewable energy plans
The budget includes plans for a Rs 2,000 crore floating solar project at Bakreshwar Dam integrated with a Battery Energy Storage System (BESS).
The state will also continue the rollout of rooftop solar systems under the PM Surya Ghar: Muft Bijli Yojana, with a target of 2 lakh installations. An additional subsidy of Rs 5,000 has been proposed for Scheduled Caste (SC) and Scheduled Tribe (ST) families.
The government announced plans to introduce an Open Access policy to promote solar power generation and consumption, along with the expansion of grid-connected rooftop solar photovoltaic (PV) systems. The budget also provides an additional 15% subsidy for solar-based irrigation systems in the six Paschimancchal districts under the PM-KUSUM scheme.
Network strengthening
To strengthen the power distribution network and reduce transmission losses, the budget proposes the construction of 15 new 33/11 kV substations.
The government has also allocated Rs 200 crore for underground cabling projects in 12 towns as part of efforts to modernise power infrastructure and improve network reliability.
Government outlook
Presenting the budget, Finance Minister Dr. Swapan Dasgupta said the government expects power demand to rise significantly with increased investment and economic development in the state. He said the government is planning new thermal power projects through both state-owned utilities and private sector participation to ensure adequate power supply in the coming years.
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