New Delhi, July 6 -- India's power distribution companies (discoms) are witnessing an improvement in their financial health, supported by policy reforms proposed under the Draft National Electricity Policy 2026, the Electricity (Amendment) Bill 2026 and the Digital India Energy Stack, according to a report by Macquarie.

The report said India's power sector is undergoing a dual-track transition, with coal continuing to provide baseload power at plant load factors (PLFs) of over 65 per cent, while new reforms are aimed at making the sector more market-driven and financially stronger.

Peak power demand reached a record high of around 271 GW in May 2026, highlighting pressure on the grid despite adequate base generation capacity. The report...