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Direct tariff electricity subsidies in India rose 32% between FY 2016 and FY 2019, reaching INR 110,391 crore in FY 2019. The report finds that the Ujjwal DISCOM Assurance Yojana (UDAY) scheme has largely failed to improve the financial health of distribution companies (DISCOMs), as 24 of 31 states and union territories reported revenue gaps in FY 2019 and only 6 met the target of reducing aggregate technical and commercial (AT&C) losses to 15%. Furthermore, no state adhered to the National Tariff Policy's target range for billing consumers relative to the average cost of supply. Subsidy allocation is heavily skewed, with agricultural consumers receiving 75% of total subsidies, while transparency remains low, with only 13 states and union territories clearly reporting subsidy data.

The report finds that electricity subsidies in India are the largest form of energy support, with direct tariff subsidies totaling INR 110,391 crore in FY 2019. Despite the UDAY bailout scheme, DISCOM finances have generally worsened, characterized by increasing average costs of supply (ACoS) and persistent revenue gaps. The analysis reveals significant transparency issues, with discrepancies between Power Finance Corporation (PFC) reports and state regulatory orders. Subsidies are heavily skewed toward agricultural (75%) and domestic (20%) consumers, often without clear consumption limits, leading to regressive distribution where higher-income households capture a disproportionate share of benefits. The report recommends improving data standardization, exploring targeted subsidies via Direct Benefit Transfer for Power (DBT-P), and prioritizing billing and collection efficiency to reduce aggregate technical and commercial (AT&C) losses.

The report argues that shifting subsidies from kerosene to off-grid solar is economically viable and socially beneficial for India's rural poor. It details three primary subsidy pathways—targeting households, manufacturers, or financial institutions—and provides a framework for administration, funding, and beneficiary targeting to achieve '24x7 Power for All'.

The document outlines proposed amendments to India's Electricity Act 2003 to introduce direct benefit transfers for subsidies and promote renewable energy. It notes a government ambition to increase its renewable energy target to 225 GW by 2022, though external analysts are less optimistic. The report highlights a rising fiscal burden from oil subsidies, potentially reaching USD 7.4 billion in FY2019, and details significant financial stress in the power sector. Additionally, it covers the expansion of LPG connections for poor women and the transition of several states to become kerosene-free.

The document analyzes the inefficiencies of India's Public Distribution System (PDS) for kerosene, noting high rates of leakage and poor targeting. It argues that current subsidies make solar lighting less cost-competitive for households, particularly for mid- and high-end systems. The authors recommend streamlining eligibility, phasing out subsidies in electrified areas, and redirecting funds toward a 'lighting subsidy' for solar solutions.

The document outlines a multi-level governance approach to urban climate action, emphasizing that while cities are primary sites of emissions and vulnerability, they require supportive national policy frameworks and international financing to achieve transformative change. It details local jurisdictional powers, national enabling environments, and specific access modalities for the Green Climate Fund.

The report assesses the modified DBTL (PAHAL) scheme in India, finding it largely successful in reducing the diversion of subsidized LPG and improving delivery regularity. While consumer enrolment was high and satisfaction generally positive, the study identifies critical gaps in financial inclusion for rural households and a lack of awareness regarding grievance redressal and subsidy transfer status. The authors highlight that while DBTL is a mechanism for disbursement rather than a conventional subsidy reform, it enables future targeted reforms by establishing a common market price.

The report examines the distribution of centrally financed fuel subsidies in India, highlighting a significant disparity where Bihar, one of the poorest states, consistently receives the lowest per capita transfers for diesel, LPG, and kerosene compared to wealthier states like Haryana, Delhi, and Gujarat.

The report analyzes the energy-irrigation nexus in Haryana, India, where heavily subsidized electricity has led to the over-extraction of groundwater and financial distress for distribution companies (DISCOMs). It quantifies subsidies for wheat, paddy, and sugarcane, finding that electricity subsidies account for approximately 46% of total subsidies. The study recommends spatial targeting of reforms, the adoption of energy-efficient and solar pumps, and a transition toward output-driven subsidy regimes to ensure long-term environmental and economic sustainability.

The report finds that India's clean cooking sector is hampered by a lack of cross-government coordination, limited access to commercial finance for entrepreneurs, and a significant gap in consumer awareness. While the Ministry of New and Renewable Energy (MNRE) has established technical standards, the sector remains supply-driven, often ignoring the agency and specific preferences of rural households. The authors argue that the National Biomass Cookstoves Initiative (NBCI) should evolve into a cross-government National Mission to leverage the distribution networks and awareness-raising capacities of other ministries.

The report analyzes 11 CDM projects across five Indian states, concluding that sustainable development through these projects is largely a 'myth'. It finds severe discrepancies between PDD promises and actual impacts, noting that industrial projects often use CER revenue to expand production, leading to increased pollution. Most projects failed to provide promised local employment, healthcare, or education, and some caused significant harm through illegal land acquisition and environmental degradation. Only the Muni Seva Ashram solar community kitchen project was identified as successfully contributing to social, economic, environmental, and technological well-being.

The document analyzes how structural and regulatory inefficiencies in India's trucking industry, such as poor road quality and toll delays, exacerbate the impact of rising diesel prices. It finds that truck operators are largely 'price takers' unable to pass fuel cost increases to customers due to fierce competition and a dependence on brokers. To mitigate these impacts, the brief recommends short-term interventions like reducing toll waiting times and fixing minimum freight rates, alongside long-term structural reforms including computerized exchange networks and improved fuel efficiency standards.

The document examines why the clean cooking market in India has failed to expand despite the widespread use of inefficient biomass-burning 'chulha' stoves by approximately 160 million households. It highlights that biomass burning contributes roughly half of the black carbon in the atmospheric brown cloud over South Asia, impacting health and climate. Key barriers identified include a lack of legitimacy for improved stoves, failure to design products based on user preferences, and poor access to finance and distribution for small-scale producers. The brief recommends shifting focus from consumer price subsidies toward supply-side support, improving user-centered design, and making clean cooking a cross-government priority.

The document argues that replacing approximately 16 million inefficient agricultural pump sets in India, combined with the adoption of High Voltage Distribution Systems (HVDS) and mandatory metering, can significantly reduce energy consumption and carbon emissions. It identifies financing as the primary barrier, driven by high upfront costs of efficient pumps and flat electricity tariffs that remove incentives for conservation. The author proposes a phased policy approach moving from pump replacement to metered tariffs, suggesting that international cooperation is most effective for financial support and capacity building rather than technology transfer. The paper also provides a framework of indicators to monitor program initiation, pump deployment, and tariff reform.

The document identifies three primary policy areas for GHG mitigation in India's power sector: the adoption of supercritical and ultra-supercritical coal technologies, the replacement of inefficient agricultural pump sets, and the upgrade of distribution networks to High Voltage Distribution Systems (HVDS). It argues that while these options have large mitigation potential, implementation is hindered by resource constraints, poor financial health of utilities, and political challenges regarding metering. The author advocates for moving beyond the Clean Development Mechanism (CDM) toward long-term North-South cooperation to facilitate technology transfer and financing.

The report analyzes the rapeseed/mustard oil sector in India, highlighting its economic importance and the challenges posed by price volatility. It examines various government interventions, including Minimum Support Prices (MSP) and the Public Distribution System (PDS), while recommending improvements in productivity, futures market regulation, and tax rationalization to stabilize revenues for farmers and the state.

The report examines the proliferation of subsidies in India across agriculture, energy, and industrial sectors, highlighting a significant gap between official budgetary estimates and actual costs. It argues that while subsidies are intended for welfare and food security, they often result in regressive distribution, environmental degradation, and financial instability for state entities. The document specifically analyzes the impact of irrigation, power, and fertilizer subsidies on the environment and equity, and reviews India's export incentive schemes and their compatibility with WTO rules, including specific disputes in the iron and steel sector.

The document examines the evolution of India's power sector, highlighting the transition from state-run electricity boards (SEBs) to a restructured model involving independent power producers (IPPs) and privatization. It details the 'Orissa Model' promoted by the World Bank, the failures of the 1991 IPP policy, and the subsequent scaling of restructuring to other states like Andhra Pradesh. The authors argue that political expediency and financial crises often overrode social and environmental goals, leading to institutional 'lock-ins' such as agricultural subsidies and expensive long-term power purchase agreements.

The document describes the methodology for the Indian States’ Electricity Transition analysis, which evaluates 16 states representing approximately 90% of India's annual power requirement. The analysis uses 17 parameters across four dimensions: Decarbonisation, Performance of the Power System, Readiness of the Power Ecosystem, and Policies and Political Commitments. Data for financial year 2021-22 was primarily sourced from government entities such as the Central Electricity Authority (CEA) and NITI Aayog, then normalised and weighted by sectoral experts to produce state-wise scores.

The report evaluates 16 Indian states on their electricity transition across four dimensions: decarbonisation, power system performance, ecosystem readiness, and policy commitments. Karnataka is identified as the top performer across all dimensions, while states like Bihar, Uttar Pradesh, and West Bengal are urged to ramp up efforts. The analysis highlights that many renewable-rich states have significant untapped potential and recommends improving data transparency, strengthening transmission infrastructure, and expanding green market mechanisms to accelerate the transition.