India to offer $12B bailout to state-run power companies
The Indian government is planning a $12 billion rescue for struggling state-run power companies—but there's a twist.
To get the funds, states will need to either privatize their utilities or list them on the stock market.
This move, part of PM Modi's reform agenda, is meant to finally tackle years of inefficiency in the sector.
The full plan is expected to drop with the February 2026 budget.
The full plan is expected to drop with the budget
State power distributors are drowning in losses ($80.6 billion) and debt ($84.4 billion) as of March 2024, making reliable electricity tough to deliver.
The bailout could mean more private players like Adani Power and Tata Power stepping in—potentially bringing better service but also sparking pushback from workers and politicians wary of change.
If successful, the reforms aim to improve financial and operational metrics, potentially enhancing service reliability across India.