Former Haryana Chief Minister Manohar Lal Khattar has been appointed as the Power Minister in Modi 3.0, alongside six-time North Goa MP Shripad Yesso Naik, who will serve as the Minister of State for the portfolio.
In addition to this role, Khattar has also been assigned Housing and Urban Affairs in the new Cabinet.
Khattar, 70, served as Haryana's chief minister until March 12, when he was succeeded by Nayab Singh Saini.
Recently, he contested from the Karnal constituency in the Lok Sabha elections, securing a victory with a substantial margin of 2,32,577 votes.
A crucial portfolio, global rating agency Moody’s has expressed strong confidence in the growth trajectory of India’s power sector. Moody’s highlighted that investments in renewable energy and electricity transmission will continue to drive the sector over the next six to seven years, projecting power demand in India to grow by 5 to 6 percent annually during this period.
The agency also noted that coal-based generation capacity additions will likely support baseload requirements.
Moody’s pointed out that renewable energy companies, which are largely funded by debt, will experience high financial leverage over the next three years. However, the industry benefits from consistent government regulations and policies that support the transition to renewable energy, enabling power companies to progress despite high debt levels.
The rating agency emphasized the importance of the renewable energy sector, stating that India needs to add around 44 gigawatts (GW) to meet its target of 500 GW of renewable energy capacity by 2030. Achieving this target will require an investment of $190 billion to $215 billion over the next seven years. Additionally, an estimated $150 billion to $170 billion will be needed for electricity transmission, distribution, and energy storage to accommodate the incremental renewable energy capacity.
Moody’s highlighted that strong policy support has enabled India to increase the share of renewable energy in its power capacity mix to around 43 percent in the fiscal year 2023-2024. Continued policy support will help India make significant progress towards its 2030 transition targets and its 2070 net-zero targets. The country aims to achieve 500 GW of renewable energy installed capacity by 2030 and has set a target to produce 5 million tonnes of green hydrogen by 2030, supported by 125 GW of renewable energy capacity.