India's electricity sector is in high debt, and electricity prices are raised or unavoidable

According to the statistics of the "Financial Times of India", India's local electric power facilities have a debt of about 6 trillion rupees (approximately RMB 700 billion), accounting for 6% of GDP. Of these, about one-third were used to make up for operating losses. The worst-affected state of Rajasthan needs to increase its electricity price by 80% before it is possible to maintain the balance of the electricity sector.

At present, due to political and social stability considerations, the Indian state government controls local electricity prices. However, this has also weakened the investment enthusiasm of the power sector, which has led to a growing tension in India's power supply and demand situation. Some analysis pointed out that the gradual increase in electricity prices will be difficult to avoid.

On July 1, New Delhi, the capital of India, raised electricity prices for the fourth time in 10 months, and the price increase was as high as 21%. After the price adjustment, residents pay Rs. 3.7-6.4 rupee (approximately RMB 0.43-0.74) per kWh of electricity, based on a fixed electricity charge of Rs. 40-150 per month.