Energy Infrastructure is a fundamental concept that serves as the support system for India's economic and social development. It is defined as the elementary structure and services required for the production, conversion, transmission, and distribution of energy, encompassing commercial sources like coal, petroleum, and electricity, as well as non-commercial sources. The infrastructure includes facilities for electricity generation, transmission, and distribution, non-conventional energy projects, and oil and gas pipeline networks.
The history of modern energy infrastructure in India began during the British colonial period with the introduction of coal mining in the 1770s. The first coal-fired power plant was established in Calcutta in 1899. The problem it solved post-independence was the lack of a unified, planned system, which led to the enactment of the Electricity (Supply) Act, 1948, establishing the Central Electricity Authority (CEA) and State Electricity Boards (SEBs). This was followed by a focus on hydroelectric power, exemplified by the completion of the Bhakra-Nangal dam in 1963.
The mechanism of the sector is primarily governed by the Electricity Act, 2003, which regulates the generation, transmission, distribution, and trading of electricity. The Act promotes competition and mandates the establishment of the Central Electricity Regulatory Commission (CERC) and State Electricity Regulatory Commissions (SERCs). A key provision is the mandate for SERCs to promote renewable energy by specifying a percentage of total electricity consumption to be purchased from such sources. The operation of oil and gas pipelines is regulated by the Petroleum and Minerals Pipelines Act, 1962.
Energy infrastructure connects to the Ministry of Power, the Ministry of New and Renewable Energy (MNRE), which was established in 1982, and the Energy Conservation Act, 2001. The five regional grids were fully synchronized in the 2010s to form a single National Grid.
The sector has seen recent changes, notably in the Goods and Services Tax (GST) regime, where the tax on renewable energy devices was cut from 12% to 5%, while the GST on coal and lignite was increased from 5% to 18% as of September 22, 2025. India is also pursuing an ambitious target of installing 500 GW of non-fossil fuel capacity by 2030. The core structure of the Electricity Act, 2003, remains, though amendments like the Electricity (Amendment) Bill, 2014, have been proposed to separate carriage from content in distribution to enhance competition.