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.

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.

Nuvoco Vista Corporation Ltd said its board has approved the setting up of a bulk cement terminal at Viramgam, Sachana in Gujarat. The proposed terminal will have a handling capacity of around one point five million tonnes per annum (mn tpa) and will include a dedicated railway siding. The facility is intended to improve unloading, storage and dispatch of both loose and packed cement.

The company said the rail connectivity and streamlined logistics are expected to position the terminal as a key distribution hub for the Gujarat market. The installation is aimed at reducing transit times and improving inventory turns while supporting distribution to trade and retail channels. The investment is presented as part of the company’s broader network optimisation.

The company indicated the project is expected to be commissioned by the financial year 2027-28. Nuvoco reported its highest-ever consolidated sales volume of 20.4 mn t in the year, representing a five per cent year-on-year rise. The firm said revenue and profitability also reached record levels, supported by improved realisations and operational efficiencies.

The premium product mix continued to strengthen and contributed 43 per cent to overall sales while the trade segment accounted for 74 per cent. Earnings before interest, tax, depreciation and amortisation saw a 35 per cent year-on-year increase for the full year. For the fourth quarter consolidated volume stood at six mn t, with EBITDA up six per cent year-on-year, making it the company’s most profitable quarter.

Nuvoco Vista Corporation Ltd is described as one of India’s leading cement and concrete manufacturers with a consolidated capacity of 25 mn tpa. The company offers cement, ready-mix concrete and other building materials and intends to use the Viramgam terminal to strengthen its regional presence.