A weak link lurks in Indian Prime Minister Narendra Modi’s push for an unprecedented $200 billion expansion of clean energy: cash-starved state electricity distributors.
The retailers have racked up more than 2.5 trillion rupees ($39 billion) of losses partly because they’re forced to sell below cost to keep energy affordable, Power Ministry data show. Reliant on loans and subsidies, their scope to embrace solar and wind over cheaper, dirtier coal-fired supplies is in question.
