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CRF flags execution gaps in flagship energy schemes ahead of Union Budget

By Enersider Desk | New Delhi

Policy think tank Chintan Research Foundation (CRF) has called for a sharper focus towards integration and execution in the energy sector. It said that the government should focus on building institutional capacity and scheme convergence across India’s flagship energy transition programmes as ambitious targets alone will not deliver durable climate or power-sector outcomes.

For Budget 2026–27, the think tank recommends a shift from scheme-by-scheme expansion towards integration, sequencing and implementation certainty, CRF said in a report. 

“The priorities include faster execution under RDSS, clearer alignment between rooftop solar programmes and distribution reforms, and greater emphasis on institutional capacity at the state and utility level,” the report said.

Such an approach, CRF argues, would strengthen the credibility of India’s energy transition and ensure that public spending delivers long-term gains in energy security, climate mitigation and system resilience.

In its pre-Budget assessment of the energy sector, CRF examines the performance of four core schemes that anchor India’s climate and power reform strategy namely the Revamped Distribution Sector Scheme (RDSS), Grid-Connected Rooftop Solar Programme (RTS Phase II), PM Surya Ghar: Muft Bijli Yojana, and PM-KUSUM.

Together, these initiatives span generation, consumption and distribution, and are jointly implemented by the Ministry of Power and the Ministry of New and Renewable Energy (MNRE).

CRF notes that while India has significantly scaled up budgetary allocations for these schemes in recent years, outcomes on the ground remain uneven. The central challenge is not the absence of ambition or policy design, but the gap between financial allocations, institutional capacity and last-mile delivery.

A key concern highlighted is the readiness of the distribution sector. RDSS, which accounts for the bulk of power-sector spending, is intended to reduce losses, improve billing efficiency and modernise grids. However, slow progress in smart metering and uneven execution across states have constrained the system’s ability to absorb decentralised renewable energy.

According to CRF, without financially viable and operationally capable DISCOMs, the benefits of rooftop solar and agricultural solarisation schemes risk remaining under-utilised.

On MNRE-led programmes, it is observed that rooftop solar initiatives have improved visibility and early adoption, particularly under PM Surya Ghar, but face structural barriers related to affordability, installer reach and DISCOM processes.

Similarly, PM-KUSUM’s progress has been shaped more by state-level preparedness and coordination with agricultural power management than by headline budget allocations.

CRF also flags the absence of robust outcome-linked monitoring frameworks across schemes. In the absence of clear performance benchmarks, rising allocations may translate into faster approvals rather than measurable improvements in efficiency, emissions reduction or service delivery.

Also Read: Renewable energy industry seeks sops for R&D affordable green finance in FY27 Budget

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