Daily Current Affairs 29 October 2026 – IAS Current Affairs
Current Affairs 29 October 2026 focuses on the Prelims-Mains perspective. Major events are :
Countering AI Misinformation Through Digital Literacy
Source: Indian Express
GS II: Important aspects of governance, transparency and accountability; GS III: Science and Technology
Overview
- AI-generated misinformation, including deepfakes and fabricated audio, threatens public trust, democratic processes and informed decision-making.
- Digital access alone is insufficient; citizens need Media and Information Literacy (MIL) to verify sources, identify bias and recognise manipulated content.
- Governments, educational institutions, digital platforms and content creators must promote digital literacy, transparency and responsible information sharing while protecting freedom of expression.
- Integrating media literacy into education, strengthening fact-checking and ensuring platform accountability are essential to counter misinformation and build a digitally informed society.
Why in the News?
An article Indian Express highlights the growing threat of AI-generated misinformation and the need to strengthen Media and Information Literacy (MIL).
News in Brief
- India has more than a billion internet subscribers, but connectivity does not automatically translate into the ability to identify reliable information.
- Deepfakes and fabricated audio recordings can mislead citizens, influence political opinions and undermine democratic processes.
- Citizens need to evaluate sources, identify bias, understand algorithms and verify information before sharing it.
- Governments, educational institutions, digital platforms, media organizations and content creators must work together to reduce misinformation.
What is AI-Generated Misinformation?
- AI-generated misinformation refers to false or misleading content created or modified using artificial intelligence.
- It may include fabricated text, manipulates images, synthetic audio and realistic videos depicting events that never occurred.
- Deepfakes are synthetic or manipulated media that realistically imitate a person’s appearance, voice or actions.
- Misinformation generally refers to false information shared without necessarily intending to deceive, whereas disinformation involves the deliberate creation or dissemination of false or misleading information to deceive others.
Digital access does not guarantee digital literacy
- India’s expanding internet connectivity has increased access to information.
- However, the ability to access information is different from the ability to assess its credibility.
- A 2025 National Statistics Office Survey found that only 18% of people aged 15 and above reported being able to file a cybercrime complaint through the official portal.
- This highlights the gap between digital access and the practical skills required to navigate the online environment safely.
- People may have access to information but lack the skills to identify manipulated content, recognize online fraud or report cybercrime.
Artificial Intelligence is increasing the scale of misinformation
- Generative AI enables the creation of realistic but fabricated images, videos, audio recordings and text.
- Such content can circulate rapidly through social media platforms, messaging applications and algorithm-driven feeds.
- Examples;
- Nepal floods: During the August floods in Nepal, videos containing images taken out of context circulated online, demonstrating how misleading content can distort public understanding during emergencies.
- Slovakia’s 2023 parliamentary election: An AI-generated audio recording appeared two days before the election, falsely implicating political figures in electoral misconduct.
- These examples demonstrate how misinformation can damage public trust, distort political debate and complicate emergency responses.
Media and Information Literacy is Essential
- Media and Information Literacy (MIL), refers to the ability to access, understand, critically evaluate, use and share information responsibly across different media platforms.
- It enables citizens to;
- Verify the authenticity of information before sharing it.
- Distinguish facts from opinions and manipulated content.
- Identify bias and misleading narratives.
- Understand how algorithms influence the information they see.
- Participate responsibly in democratic and public life.
- UNESCO’s Global Media and Information Literacy Week promotes awareness of these skills.
- The 2026 theme is We All Play a Part: Media and Information Literacy for the People.
- The central argument is that media literacy must become a basic life skill rather than remain a specialized technical subject.
UNESCO and Media Literacy
- The United Nations Educational, Scientific and Cultural Organization (UNESCO) promotes Media and Information Literacy to strengthen critical thinking, responsible information sharing and informed participation in public life.
- Its work includes:
- Promoting media and information literacy education.
- Supporting journalists and media development.
- Encouraging responsible digital platform governance.
- Developing resources to address misinformation and emerging digital challenges.
- UNESCO’s work connects media literacy with education, freedom of expression, access to information and democratic participation.
Governments must balance freedom of expression and accountability
- Governments have a responsibility to address misinformation, hate speech and online violence.
- However, measures to counter false information must not unnecessarily restrict legitimate expression or access to information.
- Labelling AI-generated content can help users recognize synthetic media, but labelling alone cannot prevent deception or the misuse of generative AI.
- A balanced approach is needed to protect freedom of expression while ensuring accountability and raising public awareness.
Education must focus on critical thinking
- Students must learn how to question information rather than accept everything they encounter online.
- This requires;
- Training teachers in media and information literacy.
- Providing practical learning resources in local languages.
- Integrating source verification and fact-checking into classroom activities.
- Teaching students how algorithms influence online information.
- Encouraging responsible digital behavior.
- Such skills should extend beyond formal education, particularly to rural communities, women and persons with disabilities.
- Community radio, local journalists and health workers can also help communicate verified information in languages that people understand, especially during emergencies.
Digital platforms must be more transparent
- Social media and other digital platforms influence what users see through recommendation algorithms.
- Content that generates strong emotional reactions may receive greater attention and circulate widely.
- Platforms should therefore;
- Improve transparency regarding recommendation systems.
- Clearly label synthetic or AI-generated media where appropriate.
- Respond promptly to harmful misinformation during crises.
- Strengthen accountability for content moderation decisions.
- Explain how misleading claims are identified and verified.
- UNESCO’s Guidelines for the Governance of Digital Platforms provide a framework for promoting transparency, accountability and human rights in the digital environment.
- In multilingual countries such as India, content moderation must also work effectively beyond English and Hindi.
Content Creators and Influencers Have a Responsibility
- Content creators and social media influencers can significantly shape public opinion. Their reach gives them the ability to spread both reliable information and misleading narratives.
- Training in verification, ethical communication and responsible content creation can help reduce the circulation of false information.
- Creators should verify claims before publishing them, disclose relevant context and correct misleading statements when identified.
Children need protection through Education
- Children increasingly encounter AI-shaped information environments before developing the critical thinking skills needed to evaluate them.
- Simply restricting access to technology is not sufficient. Children must also learn how to recognize manipulated content, question online claims and use digital tools safely.
- Media and Information Literacy can strengthen their ability to distinguish reliable information from fabricated content while encouraging responsible technology use.
Challenges for India
- India faces several challenges in tackling AI misinformation, including low digital literacy, the rapid spread of deepfakes and difficulties in fact-checking regional languages.
- Misleading content can deepen social divisions and weaken public trust.
- Limited verification habits and the shortcomings of automated detection tools further complicate the problem.
- At the same time, strict online content restrictions may lead to censorship and threaten freedom of expression.
Way Forward and Conclusion
India should promote media literacy through education, public awareness campaigns and inclusive digital skills programmes. AI developers and digital platforms must improve transparency, strengthen content moderation and support fact-checking. Citizens should verify information before sharing it.
AI misinformation threatens informed decision-making and democratic participation. A balanced approach combining media literacy, responsible AI and platform accountability is essential to protect freedom of expression and build an informed society.
Inter-State Council And Cooperative Federalism In India
Source: Indian Express
GS II: Polity and Governance
Overview
- The Inter-State Council, established in 1990 under Article 263, promotes coordination between the Union and state governments.
- Irregular meetings, limited institutional autonomy and political differences have weakened its effectiveness as a forum for cooperative federalism.
- The Council can facilitate dialogue on delimitation, resource sharing, taxation, environmental governance and inter-state disputes.
- Regular meetings, greater institutional autonomy and effective follow-up mechanisms are essential to strengthen Centre–State relations and consensus-based policymaking.
Why in the News?
An article in Indian Express highlights that the Inter-State Council has become largely inactive and must be revived to strengthen cooperative federalism through regular Centre-State dialogue on issues such as delimitation, resource sharing and environmental governance.
News in Brief
- The Inter-State Council was formally constituted in 1990 on the recommendation of the Sarkaria Commission.
- Article 263 of the Constitution provides for the establishment of an Inter-State Council to investigate and discuss matters of common interest between the Union and the states.
- Irregular meetings, limited institutional autonomy and its administrative placement under the Union Home Ministry have weakened its effectiveness.
- Reviving the Council could improve Centre–State relations, reduce political friction and promote consensus-based policymaking.
What is the Inter-State Council?
- The Inter-State Council is a constitutional mechanism designed to facilitate coordination between the Union government and state governments.
- It provides a forum for discussing issues of common interest, examining intergovernmental disputes and developing a coordinated approach to national policies.
Constitutional provision
Article 263 of the Indian Constitution
- The President may establish an Inter-State Council if it appears that public interests would be served by its establishment.
- Its duties may include;
- Investigating and advising upon disputes between states.
- Investigating and discussing subjects in which some or all states, or the Union and one or more states, have a common interest.
- Making recommendations for better coordination of policy and action on such subjects.
- The Council is an advisory and consultative body.
- It does not function as a court or possess the power to issue binding decisions.
Background and Evolution
- Constitutional vision: Article 263 was included to provide an institutional mechanism for consultation and coordination in India’s federal system.
- Sarkaria Commission: The Commission on Centre–State Relations recommended the establishment of the Inter-State Council to strengthen cooperative federalism.
- Establishment in 1990: The Council was formally established through a Presidential Order in 1990.
- Subsequent decline: Despite its potential, irregular meetings and limited institutional autonomy weakened its role as a forum for meaningful intergovernmental dialogue.
The Council’s inactivity reflects a broader preference for unilateral decision-making over institutionalized consultation between the Centre and the States.
Key Issues
Institutional decline and irregular meetings
- The Council has failed to function as a regular platform for resolving disagreements between the Union and State governments.
- Its meetings have been infrequent, with long gaps between deliberations.
- This has reduced its ability to address emerging federal challenges in a timely manner.
- A constitutional institution can remain ineffective when it lacks regular meetings, administrative independence and political commitment.
Limited Institutional Autonomy
- The Council functions under the Union Home Ministry, which may limit its administrative autonomy as a forum for Centre-State consultation.
- Greater institutional independence and a professional secretariat could help ensure neutral and effective federal dialogue.
Declining role of cooperative federalism
- The Council was envisioned as a mechanism to promote dialogue between the Centre and States.
- However, its weakening has reduced opportunities for governments to discuss common concerns before decisions are taken.
- This can deepen mistrust between the Union and states, particularly when state governments are led by opposition parties.
Unilateral decision-making
- The absence of meaningful consultation can encourage the Centre to adopt policies without adequately considering their implications for states.
- Such an approach may lead to political disagreements, administrative resistance and constitutional disputes.
- Issues involving taxation, resource allocation, environmental protection and public health often require coordination across different levels of government.
Federal concerns surrounding delimitation
- Delimitation involves the adjustment of electoral constituencies and can affect political representation.
- Changes in representation may raise concerns among states about their relative influence in Parliament.
- Such major constitutional issues require structured consultation between the Centre and States to build consensus and protect federal balance.
Weakening of trust between the Centre and States
- The decline of the Council has contributed to a widening gap between central policymaking and state-level implementation.
- States are responsible for implementing many policies and delivering essential public services. Their exclusion from meaningful consultations can weaken cooperation and create avoidable conflicts.
- A functioning Inter-State Council could help rebuild trust through regular discussions and consensus-based decisions.
Importance of Inter-State Council
- Strengthening Cooperative Federalism
- India’s federal structure requires cooperation between the Union and States.
- The Council can provide an institutional platform for discussing disagreements, building consensus and coordinating national policies.
- Improving Policy Coordination
- Several policy areas require cooperation across governments, including;
- Economic and tax reforms.
- Infrastructure development.
- Environmental management.
- Public health and disaster response.
- Natural resource sharing.
- Internal security and inter-state coordination.
- Regular consultations can help align national objectives with state-level requirements.
- Several policy areas require cooperation across governments, including;
- Resolving Inter-States Disputes
- Disagreements between states over resources, administrative arrangements and development priorities can affect governance.
- The Council can facilitate dialogue and help identify mutually acceptable solutions, although it does not replace judicial or other legally prescribed dispute-resolution mechanisms.
- Promoting Inclusive Governance
- States differ in their economic conditions, geographical features, development priorities and administrative capacities.
- The Council can provide a common platform for states to present their concerns and contribute to national policymaking.
- This would make governance more responsive to regional diversity.
- Bridging the Policy-Implementation Gap
- The Union government may formulate national policies, but their implementation often depends on state governments and local institutions.
- Consultation can identify implementation difficulties at an early stage and improve the effectiveness of public programmes.
Inter-State Council and the Changing Nature of Federal Challenges
The contemporary governance challenges increasingly require cooperation between different levels of government.
| Issue | Need for Centre–State Coordination |
|---|---|
| Delimitation | Building consensus on political representation and constitutional changes |
| Taxation | Addressing fiscal concerns and coordinating economic reforms |
| Resource sharing | Resolving disagreements over the allocation and use of resources |
| Infrastructure | Coordinating inter-state transport, energy and development projects |
| Environmental governance | Managing river systems, pollution and ecological concerns across state boundaries |
| Public health | Coordinating responses to epidemics and other health emergencies |
| Social welfare | Aligning national schemes with regional needs and implementation capacities |
The Council’s inactivity limits the scope for resolving these concerns through regular institutional dialogue.
Challenges in reviving the Inter-State Council
- Political differences: Conflicts between the Union government and opposition-ruled states can weaken consensus-building.
- Lack of regularity: Without a predictable meeting schedule, the Council may struggle to respond to emerging issues.
- Limited autonomy: Administrative dependence can affect perceptions of neutrality and institutional effectiveness.
- Advisory nature: Its recommendations are not binding, so implementation depends on the willingness of participating governments.
- Overlapping institutions: The existence of other intergovernmental bodies can create questions about institutional roles and coordination.
- Limited follow-up: Discussions will have little impact unless recommendations are monitored and governments report on their implementation.
Way Forward and Conclusion
The Inter-State Council should meet regularly, with greater institutional autonomy, structured consultations and effective follow-up mechanisms. Prioritizing fiscal relations, resource sharing and inter-state disputes can improve coordination and consensus-building.
Reviving the Council as an effective forum for Centre-State dialogue can strengthen trust, address regional concerns and ensure that cooperative federalism translates into effective governance.
Cyclone Arnab And The Influence Of El Nino
Source: Indian Express
GS I: Geography
Overview
- Cyclone Arnab highlights the impact of tropical cyclones on India’s east coast, particularly through heavy rainfall, flooding and damage to coastal infrastructure.
- El Niño influences atmospheric circulation and oceanic conditions, but its effects on cyclone formation and intensity vary across ocean basins.
- Warm sea-surface temperatures, atmospheric moisture, low vertical wind shear and the Coriolis force are important factors in tropical cyclone development.
- Strengthening IMD forecasts, early-warning systems, coastal resilience and ecosystem-based protection is essential to reduce cyclone-related risks.
Why in the News?
Cyclone Arnab brought heavy rainfall and flooding to parts of Andhra Pradesh and Odisha. The event highlights the influence of El Nino on tropical cyclone formation, intensity and movement.
News in Brief
- Cyclone Arnab caused heavy rainfall, flash floods and waterlogging in coastal Andhra Pradesh and Odisha. Several districts were placed under weather alerts.
- The cyclone developed over the Bay of Bengal and intensified into a very severe cyclonic storm before making landfall near the Andhra Pradesh coast.
- El Niño alters sea-surface temperatures and atmospheric circulation over the tropical Pacific and Indian Ocean, influencing cyclone behavior.
- Odisha and West Bengal are generally more exposed to Bay of Bengal cyclones. During some El Niño years, cyclone activity can shift towards the Andhra Pradesh and Tamil Nadu coasts.
How did cyclone Arnab intensify?
- Cyclone Arnab originated as a low-pressure system over the southeast Bay of Bengal on October 23 and intensified into a cyclonic storm by October 26.
- It subsequently strengthened into a very severe cyclonic storm, with wind speeds increasing from around 125 kmph around 185 kmph.
- The cyclone moved towards the Andhra Pradesh coast faster than initially forecast.
- After crossing the coast between Repalle and Vishakhapatnam, it weakened as it moved inland.
- Heavy rainfall affected coastal Andhra Pradesh and Odisha, with flooding and damage reported in vulnerable areas.
How does El Nino influence cyclones?
- El Nino is the periodic warming of the central and eastern equatorial Pacific Ocean.
- It alters atmospheric circulation, wind patterns and rainfall distribution across the tropics.
- Its influence on tropical cyclones includes;
- Changes in wind patterns: El Niño can alter large-scale atmospheric circulation and vertical wind shear, affecting cyclone formation and intensification.
- Ocean temperatures: Warm ocean water supplies the heat and moisture needed to fuel tropical cyclones.
- Regional variations: El Niño can influence where cyclones form and the direction in which they move, although the response differs between ocean basins.
- Indian Ocean influence: Changes in atmospheric circulation and the Indian Ocean’s thermal conditions can affect cyclone activity in the North Indian Ocean.
- El Nino does not necessarily increase cyclone activity everywhere.
- Its effects depend on regional sea-surface temperatures, wind shear, atmospheric circulation and other climate conditions.
Why does Cyclone activity shift along India’s East Coast?
- Odisha and West Bengal are particularly exposed to cyclones originating in the Bay of Bengal.
- During certain El Niño years, changes in atmospheric circulation and cyclone tracks may favour impacts along the Andhra Pradesh and Tamil Nadu coasts.
- In 2014, Cyclone Hudhud affected the Andhra Pradesh coast, illustrating the potential for severe cyclones to impact this region.
- However, cyclone tracks are not determined by El Niño alone.
- Individual storm paths depend on surrounding pressure systems, steering winds and other atmospheric conditions.
Tropical Cyclones and Their Energy Source
- Tropical cyclones develop over warm ocean waters and derive energy from the transfer of heat and moisture from the sea to the atmosphere.
- Conditions favorable for cyclone development include;
- Warm sea-surface temperatures: Generally around 26.5°C or higher over a sufficient depth of water.
- High atmospheric moisture: Supports the development of deep convective clouds.
- Low vertical wind shear: Allows the storm’s vertical structure to remain organised.
- A pre-existing low-pressure system: Provides the initial disturbance around which the cyclone can develop.
- Sufficient Coriolis force: Helps the developing system acquire rotation.
- Cyclone Arnab reportedly intensified rapidly, highlighting the importance of favorable oceanic and atmospheric conditions.
How are tropical cyclones named?
- The naming of tropical cyclones in the Bay of Bengal and Arabian Sea began in 2004.
- The World Meteorological Organization (WMO) and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) support the regional cyclone-naming mechanism.
- The regional list contains names contributed by 13 member countries.
- The India Meteorological Department’s Regional Specialized Meteorological Centre (RSMC), New Delhi, officially assigns names to cyclones in the North Indian Ocean.
- Names are selected sequentially from the approved list.
- Once a name has been used, it is not repeated in the same list.
- Cyclone Arnab was named by Bangladesh while Murasu, proposed by India, was next in the sequence.
- Murasu is a Tamil word for a drum.
Cyclone movement and rainfall
- Tropical cyclones in the Northern Hemisphere generally rotate anticlockwise.
- Their movement is influenced by surrounding high and low pressure systems and large-scale atmospheric winds.
- Cyclones can intensify rapidly over warm waters but usually weaken after landfall because they lose their oceanic moisture and heat supply.
- Heavy rainfall may continue after landfall, causing flooding and landslides in vulnerable regions.
- Cyclone Arnab weakened after crossing the coast but continued to produce heavy rainfall over parts of eastern India.
Tropical Cyclones in the North Indian Ocean
- The North Indian Ocean includes the Bay of Bengal and the Arabian Sea.
- The Bay of Bengal generally experiences more tropical cyclones than the Arabian Sea.
- Warm waters, high moisture levels and favorable atmospheric conditions support cyclone formation.
- India’s east coast is particularly vulnerable to storm surges, coastal flooding and intense rainfall.
- The IMD is responsible for monitoring tropical cyclones and issuing warnings in the region.
Significance and Challenges for India
- Understanding cyclone behavior and climate drivers such as El Nino helps improve disaster preparedness, forecasting and timely evacuation, reducing casualties and property damage.
- It is also important for protecting agricultural crops, rural livelihoods and coastal infrastructure such as ports, roads and power networks.
- Strengthening early-warning systems, last-mile communication and community awareness can improve resilience in cyclone-prone regions.
Challenges
- Rapid cyclone intensification and changes in storm tracks can make forecasting and evacuation difficult.
- Coastal settlements, fishing communities and vulnerable housing face greater risks from strong winds, storm surges and flooding, which may continue even after landfall.
- Moreover, El Niño alone cannot explain cyclone behaviour, as it depends on several interacting oceanic and atmospheric factors.
Way Forward and Conclusion
The IMD’s forecasting and rapid-intensification monitoring capabilities should be strengthened, alongside better coordination between central and state agencies. Integrating ENSO forecasts with Indian Ocean conditions, improving early-warning communication for coastal communities and enforcing risk-sensitive land-use planning can reduce cyclone-related losses.
At the same time, resilient coastal infrastructure, mangrove restoration and community awareness are essential for long-term preparedness. A combination of scientific forecasting, effective disaster management and ecosystem-based protection can strengthen India’s resilience to tropical cyclones.
Rising Electricity Demand And Short-Term Power Procurement In India
Source: Indian Express
GS III: Infrastructure and Energy
Overview
- Six states have sought short-term power supplies amid rising electricity demand from agriculture, industry and weather variability.
- Declining evening solar generation and limited energy storage have increased pressure on India’s power supply.
- High procurement costs and inadequate power availability have created challenges for states and DISCOMs.
- Energy storage, better demand forecasting and efficient electricity markets are essential for reliable and affordable power supply.
Why in the News?
At least six states have sought short-term power supplies for November-December 2026 amid rising demand from irrigation, industry and unusual weather. Declining evening solar generation and limited storage pose challenges to reliable, affordable electricity supply.
News in Brief
- Six states including Gujarat, Rajasthan, Maharashtra, Madhya Pradesh, Tamil Nadu and Kerala, have floated short-term power procurement tenders to meet rising electricity demand.
- The tenders mainly cover November and December 2026, with some extending into January–May 2027.
- Tamil Nadu faces high procurement costs, with electricity prices reaching ₹41.50 per unit under certain contracts.
- Several states could not procure their full required quantities, while India’s evening peak power shortage reached approximately 5.5 GW in October 2026.
Why is Electricity demand rising?
The increase in short-term power procurement is linked to several factors.
- Unusual weather conditions: Weather variability associated with El Niño has affected electricity demand patterns.
- Higher irrigation demand: Greater reliance on electric pumps for agricultural irrigation has increased electricity consumption.
- Industrial activity: Rising industrial demand has added pressure on the electricity supply system.
- Evening peak demand: Electricity consumption remains high during evening hours, when solar power generation declines.
- Seasonal demand: Demand is expected to remain significant during the winter and festive periods, including Christmas and other seasonal occasions.
Why is evening power supply a challenge?
- India’s electricity demand often peaks in the evening, when households, commercial establishments and industries require substantial power.
- However, solar power generation declines after sunset.
- Limited battery storage capacity also restricts the ability to store surplus solar electricity generated during the day and use it later.
- This creates a mismatch between electricity generation and consumption.
- India needs sufficient dispatchable power, energy storage and flexible electricity procurement mechanisms to maintain a reliable supply during peak-demand hours.
Long-term and Short-term power Procurement
- Distribution utilities generally secure electricity through long-term Power Purchase Agreements (PPAs) with generating companies.
- However, demand forecasts can change because of weather conditions, industrial requirements and agricultural consumption.
- Short-term procurement allows utilities to meet these additional requirements.
| Feature | Long-term power procurement | Short-term power procurement |
|---|---|---|
| Duration | Often extends over several years | Covers specific periods or immediate requirements |
| Purpose | Meets regular and predictable electricity demand | Meets additional or unexpected demand |
| Pricing | Governed by contractual terms | Depends on bids, availability and market conditions |
| Flexibility | Relatively limited in the short term | Greater flexibility in quantity and duration |
| Key challenge | Long-term demand forecasting and contractual commitments | Price volatility and availability of electricity |
- Unlike exchange-based procurement, where quantities depend on available sell bids and market conditions, short-term tenders allow utilities to seek specified quantities depends on supplier participation and the prices offered.
State-Wise Power Procurement
| State | Procurement details | Key issue |
|---|---|---|
| Tamil Nadu | For November, it floated tenders for 1,000 MW but allocated only 377 MW. Of this, 20 MW was contracted at ₹35 per unit and 357 MW at ₹37.50 per unit. For December, it allocated 401 MW against a requirement of 1,000 MW, with rates reaching ₹41.50 per unit for certain contracts. | High procurement prices and a significant shortfall in contracted capacity. |
| Kerala | For November, it floated tenders for around 1,800 MW but allocated only 270 MW. Prices ranged from ₹9.30 to ₹19 per unit for different quantities and durations. For December, it allocated 633 MW against tenders for around 2,100 MW. | Limited procurement despite substantial demand. |
| Rajasthan | It floated tenders for 1,500 MW for November but allocated only 85 MW, at prices ranging from ₹9.49 to ₹9.99 per unit. For December, it floated tenders for around 2,000 MW, of which 95 MW was allocated. | A substantial gap between the quantity sought and the quantity contracted. |
| Gujarat | It floated two tenders for 1,000 MW each for November. It allocated 100 MW in each period, at prices ranging from ₹8.99 to ₹10 per unit. For December, it allocated 675 MW of the 1,000 MW sought, at prices ranging from ₹8.55 to ₹8.99 per unit. | Partial procurement despite significant additional requirements. |
| Madhya Pradesh | It floated a tender for supply from November 20, 2026, to February 15, 2027, and allocated the entire quantity sought. Prices ranged from ₹3.99 to ₹5.50 per unit. | A comparatively successful procurement outcome. |
| Maharashtra | It had not allocated any power against its 500 MW tender for November. For December, it allocated 50 MW against a tender for 500 MW, at a price of ₹9.29 per unit. | Limited availability of contracted power through the tenders. |
Why are some States paying higher prices?
- Tamil Nadu has emerged as a notable example of high-cost short-term power procurement.
- The price differences across states may be attributed to;
- Supply-demand imbalances: High demand and limited available supply can push procurement prices upward.
- Seasonal requirements: Utilities seeking electricity during peak-demand periods may face higher costs.
- Contract duration: Prices can vary depending on whether electricity is procured for a few hours, a day or a longer period.
- Availability of generating capacity: The availability of power plants and electricity offered by generators affects procurement outcomes.
- Regional and contractual differences: Transmission constraints, delivery schedules and other contractual conditions may influence prices.
- High procurement costs can increase the financial burden on distribution companies and depending on regulatory decisions and tariff arrangements, may eventually affect consumers.
Why have States failed to procure the full quantity?
- Several States have not secured the entire quantity of electricity they sought, even when offering relatively high prices.
- This points to a potential mismatch between the additional power required by distribution utilities and the electricity available for sale during specific periods.
- Short-term tenders can help utilities secure electricity, but they cannot guarantee supply when generation capacity is constrained or other buyers are competing for the same power.
- The issue highlights the need for better demand forecasting, flexible generation capacity, energy storage and improved coordination between electricity generators and distribution utilities.
Significance and Challenges for India’s Power Sector
- Reliable electricity supply supports households, agriculture and industries. Dependence on costly short-term power can strain DISCOM finances.
- Declining solar generation during evening hours highlights the need for energy storage, flexible generation and efficient demand management.
- Better forecasting and electricity market reforms can improve supply reliability and affordability.
Challenges
- India faces inaccurate demand forecasting due to weather variability, limited energy storage, high procurement costs and inadequate power availability during peak hours.
- Renewable energy fluctuations and financial and operational inefficiencies in DISCOMs further complicate electricity supply management.
Constitutional Provision
- Electricity is in the Concurrent List- Entry 38 of List III of the Seventh Schedule covers electricity.
- Both Parliament and State Legislatures can legislate on electricity, subject to constitutional provisions.
- The Centre and states share responsibilities for electricity policy, regulation and administration.
Way Forward and Conclusion
India should expand battery storage and pumped-storage hydropower, improve demand forecasting using AI and weather data, and promote flexible power generation to manage peak demand. Strengthening DISCOM finances, adopting time-of-day tariffs, improving irrigation efficiency and expanding transmission infrastructure can further reduce supply-demand imbalances.
A balanced approach combining reliable conventional power, renewable energy, energy storage and efficient electricity markets is essential to ensure affordable and uninterrupted power supply while supporting India’s clean energy transition.
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