The Andhra Pradesh government will allow private firms that require more than 300 megawatt (MW) of power to apply for distribution licences, making the state the first to extend such licences beyond the power sector. The policy targets information technology, pharmaceuticals, steel and data centres and aims to reduce reliance on state utilities as demand rises for artificial intelligence infrastructure.

Approved applicants will be able to procure electricity directly from generators through power purchase agreements, a change officials said will create more competitive tariffs and reduce supply risk. Licence holders will use the Andhra Pradesh Transmission Company (APTRANSCO) network on payment of charges and will not need a separate distribution network initially.

Licences will be granted under the Electricity Act, 2003 framework, with the Central and State electricity regulators retaining authority over terms and approvals. The recent Electricity (Amendment) Bill, 2025 sought to lower entry barriers, enable network sharing and encourage competition, while the state commission will set floor and ceiling tariffs where multiple discoms operate.

Industry players and original equipment manufacturers welcomed the policy, saying competitive supply is vital for large data centre investments. Major projects and partnerships such as those involving Adani and Google, Brookfield and Reliance, and Meta and Sify Technologies are expected to benefit as capacity expands in the state.

Analysts noted India’s data centre capacity is forecast to reach 10 gigawatts (GW) by 2030 and cited International Energy Agency estimates that global data centre electricity consumption could approach 945 terawatt hours by the same year. A one GW data centre needs an equivalent power allocation and one point five times the water, which authorities equated to 150 billion litres (150 bn litres).

Advisers warned that distribution licences will require close regulation and monitoring to prevent misuse and to ensure tariffs and supply obligations are met. Officials said the policy aims to balance investor requirements with regulatory oversight and could serve as a model for other states.

President Droupadi Murmu inaugurated a series of infrastructure projects in Rourkela including a Planetarium and Science Centre, the Nirmal Munda Parivesh Path, a Tribal Museum and an Integrated Command and Control Centre. The initiatives are intended to boost scientific awareness, preserve tribal heritage and strengthen urban governance in the region. The range of facilities reflects a deliberate effort to combine cultural conservation with technological and civic improvements.

Speaking to a public gathering, the President highlighted the rich natural beauty, cultural heritage and vibrant traditions of Sundargarh and described the area as a land of forests, rivers and sporting spirit. She noted that Rourkela has evolved as a cosmopolitan city that has promoted the state’s art, literature, tribal traditions and sports while attracting people from across the country in search of livelihood opportunities. The remarks underlined the role of urban centres in sustaining regional identity and economic mobility.

Emphasising inclusive development, she said national progress depends on the upliftment of all sections of society, particularly tribal communities, and that both central and state governments are implementing welfare schemes to accelerate development in tribal dominated districts such as Sundargarh with an emphasis on economic empowerment. The President called for collective participation in nation building and encouraged citizens to support those who have been left behind in the development process. The appeal framed development as a shared responsibility spanning government programmes and community engagement.

She expressed confidence that India is on course to become a developed nation by 2047 and observed that Odisha will mark 100 years of its formation in 2036. She stressed that realising the vision of a Viksit Bharat and a Viksit Odisha will require the combined efforts of farmers, labourers, youth and tribal communities. The newly inaugurated projects are expected to enhance scientific outreach, strengthen preservation of tribal culture and improve civic services for residents.

India’s Carbon Credit Trading Scheme (CCTS) is operational and an analysis by ICRA ESG Ratings covering 14 companies in cement and aluminium finds a limited near-term financial impact but rising costs over time. The report indicates initial compliance costs remain absorbable while continued reliance on credit purchases may escalate production costs as emission targets tighten. The assessment suggests the effect becomes more pronounced by FY27 if current trends persist.

At an assumed carbon price of $10 per t of CO2, ICRA ESG estimates profitability for some cement companies could decline by up to 19 per cent, while aluminium players could face a hit of around three per cent. The analysis highlights widening emission gaps, with the cement sector deficit rising from about 0.5 mn t of CO2 equivalent in FY26 to 1.3 mn t in FY27. Aluminium sector gaps are projected to increase from 0.5 mn t to 1.4 mn t over the same period.

Companies that undertake timely emission reductions through measures such as blended cement, alternative fuels and renewable energy could generate surplus credits and limit compliance costs, according to the report. In contrast, firms maintaining current emission intensity levels are likely to incur recurring credit requirements, especially under higher production growth scenarios. ICRA ESG characterises the scheme primarily as a transition signalling mechanism designed to nudge companies towards lowering emission intensity rather than create an immediate financial burden.

The report sets breakeven thresholds for emission reductions, noting cement firms would need to reduce emission intensity by around 0.7 per cent in FY26 and 2.7 per cent in FY27 from FY24 levels to avoid additional credit costs. For aluminium, the required reductions are about 1.6 per cent and 5.2 per cent respectively. ICRA ESG warns that early action will be critical as delayed adjustments could compound compliance costs as the carbon market evolves.