Mapping India’s Energy Policy 2025

The annex outlines the framework for mapping public financial flows in India's energy sector from FY 2014 to FY 2024. It details new subsidies for electric vehicles, biofuels, and solar energy, while revising methodologies for coal and LPG support. The document also establishes a system for quantifying government receipts and the social and environmental costs of energy, including carbon pricing and health-related externalities.

• The study tracks a wide range of government support beyond direct budgetary transfers, including tax breaks, investments by state-owned enterprises (PSUs), and support from public financial institutions (PFIs), categorized across coal, renewable energy, electricity transmission and distribution, oil and gas, bioenergy, and electric vehicles.
• Several new subsidies were introduced in 2024, including the PM Surya Ghar Muft Bijli Yojana with an outlay of INR 75,021 crore to provide rooftop solar PV systems and free electricity to 1 crore households, and the PM-eBus Sewa Scheme to electrify 10,000 urban buses with an estimated cost of INR 57,613 crore.
• The government has implemented GST concessions to promote biofuels, reducing the GST on ethanol for blending from 18% to 5%, and reducing GST on biodiesel and compressed biogas (CBG) to 5%.
• Methodologies for calculating coal subsidies were revised to improve precision; for example, the pricing of coal for utilities is now tracked using company-wise, subsidiary-wise, and grade-wise data from Coal India Limited and Singareni Collieries Company Limited.
• The document quantifies climate change externalities using a conservative social cost of carbon for India set at USD 49/tCO2 equivalent, and a conservative methane price of USD 240/tCO2e.
• Health externalities are measured through working days lost (WDL) and deaths; for 2021, WDL were estimated at 117 million for coal and 195 million for oil, with a conservative value of INR 418 per lost day.

APA

Raizada, S., Jain, S., Sekar, G. P. C., Sharma, D., Saluja, S., & Dixit, G. M. (2025). Mapping India’s Energy Policy 2025. International Institute for Sustainable Development. https://www.iisd.org/system/files/2025-12/mapping-india-energy-policy-2025-annex.pdf

Chicago

Raizada, Swasti, Saumya Jain, Godwin Paul Chandra Sekar, Deepak Sharma, Sonakshi Saluja, and Gayatri Milind Dixit. Mapping India’s Energy Policy 2025. International Institute for Sustainable Development, 2025. https://www.iisd.org/system/files/2025-12/mapping-india-energy-policy-2025-annex.pdf.

Wikipedia

{{cite report |last1=Raizada |first1=Swasti |last2=Jain |first2=Saumya |last3=Sekar |first3=Godwin Paul Chandra |last4=Sharma |first4=Deepak |last5=Saluja |first5=Sonakshi |last6=Dixit |first6=Gayatri Milind |title=Mapping India’s Energy Policy 2025 |publisher=International Institute for Sustainable Development |date=December 2025 |url=https://www.iisd.org/system/files/2025-12/mapping-india-energy-policy-2025-annex.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{raizada2025mapping, author = {Raizada, Swasti and Jain, Saumya and Sekar, Godwin Paul Chandra and Sharma, Deepak and Saluja, Sonakshi and Dixit, Gayatri Milind}, title = {{Mapping India’s Energy Policy 2025}}, institution = {International Institute for Sustainable Development}, year = {2025}, month = dec, url = {https://www.iisd.org/system/files/2025-12/mapping-india-energy-policy-2025-annex.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }