Mapping India's State-Level Energy Transition
Chhattisgarh
India's states are critical to achieving national clean energy commitments. This report maps how the Union and state governments have supported different types of energy in Chhattisgarh from fiscal years (FY) 2020 to 2024. By mapping fossil and clean energy support from the Union and state governments, the report aims to improve transparency, strengthen accountability, and guide a responsible shift toward clean energy and economic diversification for Chhattisgarh.
Key Findings
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The total support (INR 12,648 crore) came in the form of subsidies, while INR 4,024 crore was invested by public sector undertakings. Subsidies for coal—almost all from the Union government—have increased annually since FY 2020, and in FY 2024, they made up 26% of all quantified energy subsidies.
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Sixty-two percent of all quantified energy subsidies are for electricity transmission and distribution, and low-priced electricity makes up ~90% of this. Chhattisgarh state government provides 98% of these electricity subsidies.
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Clean energy subsidies constitute only 8% of total quantified subsidies in Chhattisgarh—most of this is from the state government. Union government support to renewables, much of which flows to large grid-scale projects, has been missing because of the low development of such projects in the state.
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Energy-related revenues in Chhattisgarh reached INR 22,532 crore—22% of the state’s total revenues. Seventy-eight percent of the energy-related revenues came from fossil fuels—38% from coal and 40% from oil and gas—leaving the state heavily exposed to shifts in future energy landscape.
This report measures government support by quantifying energy subsidies, public sector undertakings for fossil fuels, electricity transmission and distribution, renewable energy, biofuels, and electric vehicles between FY 2020 and FY 2024. The report also quantifies the government's energy revenues in Chhattisgarh from different types of energy. This is the first time a report has quantified the combined value of Union and state government support in Chhattisgarh's energy sector.
We identified four times more subsidies for coal, oil, and gas than for clean energy. Overall, fossil fuel subsidies have doubled since FY 2020.
Key recommendations include the following:
- The Chhattisgarh Chief Minister's Office has prepared a vision document that sets a target of 66% of renewable energy in the state's energy mix by 2047. The state's vision document outlines a renewable-led generation plan but can do more by establishing clear state-level net-zero targets that help transition government support from fossil to clean energy.
- Better targeting of electricity subsidies to low-income households can help control growing fiscal expenditure. The savings can be redirected into rooftop solar, solar pumps, small-scale wind, and repurposed thermal assets.
- Diversify revenue beyond coal, oil, and gas by enhancing production of minerals like iron ore, bauxite, and limestone, and align industrial development with the state’s long-term decarbonization goals.
- Establish a state-led coordination committee with key departments and stakeholders to design social support mechanisms for coal-dependent workers and communities. Collaborating with the Ministry of Coal and coal firm Southeastern Coalfields Limited to diversify operations and create alternative employment can drive just transition planning in the state.
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