India is undergoing a major energy transition. However, constraints on access to capital — both in terms of adequacy and affordability — are impeding the pace and efficiency of this transition.

The Goods and Services Tax (GST) has increased the cost of solar photovoltaic (PV) power generation by almost 6 per cent and reduced the cost of coal thermal power generation by 1.6 per cent. The absolute size of the subsidy to coal power generation remains INR 7,685 crore (USD 1.1 billion) higher than for solar PV in 2018.