Indian Economy·Policy Reforms

Renewable Energy Mission — Policy Reforms

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Version 1Updated 7 Mar 2026
EntryYearDescriptionImpact
42nd Amendment Act1976Inserted Article 48A into the Directive Principles of State Policy, mandating the State to 'endeavour to protect and improve the environment and to safeguard the forests and wild life of the country.'Provides a fundamental constitutional basis for environmental protection and, by extension, for policies promoting clean and renewable energy sources to mitigate pollution and ecological damage. It underpins the 'environmental' rationale of the Renewable Energy Mission.
Electricity (Amendment) Bill2022 (Proposed)Aimed to further liberalize the power sector, promote competition, and strengthen regulatory mechanisms. Key provisions included multiple distribution licensees in the same area, strengthening RPO compliance, and payment security mechanisms.While not yet enacted, this proposed amendment signifies ongoing efforts to reform the electricity sector to better integrate renewable energy, ensure financial viability of DISCOMs, and enhance consumer choice. Its potential impact includes more robust RPO enforcement and a more competitive market for renewable power procurement.
Energy Conservation (Amendment) Act2022Amended the Energy Conservation Act, 2001, to empower the central government to specify a carbon credit trading scheme and mandate the use of non-fossil sources of energy.This amendment significantly strengthens the legal framework for decarbonization. By mandating the use of non-fossil sources and introducing carbon credit trading, it directly supports the Renewable Energy Mission by creating market incentives and regulatory push for greater adoption of clean energy and reduction of emissions across various sectors, not just electricity.
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