India’s nine state-owned energy companies could progressively redirect a significant share of their over INR 2 trillion annual capital expenditure toward clean and reliable energy, strengthening energy security while accelerating the low-carbon transition, a new analysis finds.
This opportunity rests on the scale of investment these firms already command. In fiscal year (FY) 2025, the nine public sector undertakings (PSUs) invested INR 2.6 trillion across fossil fuels and clean energy, giving them exceptional capacity to influence long-term, strategic priorities through changes in capital allocation.
Of this, INR 2.3 trillion in FY 2025 was directed to fossil fuels, compared to about INR 0.3 trillion in clean energy. Progressively redirecting a share of this existing investment mix could free up close to INR 2 trillion a year for clean energy, helping bridge the gap between short-term capital expenditure (CapEx) plans and India’s long term net zero ambitions, while aligning with the growing role of renewables and electrification in global energy security.
