The new framework could require VPN operators to establish offices in India and hire compliance officers who can address grievances raised by the government, two senior government officials told The Indian Express. Penal consequences, including jail terms for local employees, are also being considered in case of non-compliance, it is understood. Much of these requirements and penalties are also present for large social media companies under India’s Information Technology (IT) Rules, 2021.

“In the last few months, we have been observing that users are able to bypass content, accounts and online services that have been blocked by the government on various grounds by using VPN services. The 2022 Cert-In directives that required VPN providers to store some usage data have not managed to rein in these companies as they have simply refused to comply. So, the need for a full-fledged law is being felt,” a senior government official said, requesting anonymity.

Queries sent to the Ministry of Electronics and IT did not elicit a response until publication.

VPN services allow users to mask their IP addresses and browse the Internet via servers located elsewhere, making it appear like the traffic is coming from a different jurisdiction, while hiding the original location. India’s censorship orders typically require companies to geo-block content within the country’s jurisdiction, so, by using a VPN server located in the US, for instance, people can visit content that has been blocked here. They are also a way to anonymously browse the web, and are largely seen as a privacy-enhancing service.

India has stepped up its content blocking ecosystem in recent years, with over 24,000 orders issued in 2025, up from the over 12,000 orders it had issued in 2024, The Indian Express had earlier reported.

Another official said the need for having local points of contact for VPN companies is being felt so that the government can direct these services to not allow access to content that is being blocked, as such services “otherwise defeat the purpose”.

For instance, when the Centre temporarily blocked Telegram ahead of the NEET-UG retest last month, David Peterson, general manager at Proton VPN, a major VPN provider, said that daily registrations for the service from India jumped by more than 120%. Peterson’s post on X and his account were both blocked in India after he shared this information.

The 2022 Cert-In directive required VPN service providers along with data centres and cloud service providers, to store information such as names, email IDs, contact numbers and IP addresses (among other things) of their customers for a period of five years. In response, VPN operators like Proton VPN, NordVPN, ExpressVPN and Surfshark, had removed their servers physically located in India and had started routing traffic coming from India via Singapore.

“We have no intention of complying with this invasive mass surveillance law, leaving us no choice but to remove our VPN servers from Indian jurisdiction,” Proton VPN had said at the time.

This year’s situation stands in contrast to last year, when hydroelectric power played a crucial role in meeting evening peak demand during summer when solar output drops. However, rainfall deficit has altered the equation. With hydro generators prioritising reservoir conservation, grid operators are relying more on thermal sources in providing flexible peak-hour generation.

Stress on coal power

Throughout the April-June period this year, coal-fired generation has remained elevated, with output climbing to 352,725.38 MU — the highest for the period since 2023.  The sustained reliance on thermal power also pushed coal consumption at power plants above supplies during the first two months of the quarter.

Latest data from the Central Electricity Authority shows the country’s 223 GW thermal fleet consumed 156.8 million tonnes (mt) of coal during April-May 2026, against supplies of 147.2 mt, resulting in a drawdown in inventories.

The higher thermal generation reflected the need to meet sustained demand from elevated night-time temperatures and agricultural consumption amid a monsoon rainfall deficit, a senior official said.

However, coal supplies to the power sector gathered some pace in June, with dispatches by Coal India Ltd (CIL) — the country’s largest coal miner — rising 7.5% y-o-y, according to company data.

That marked a sharp acceleration from the 2.2% growth recorded in May, indicating stronger coal movement to power plants as thermal generation remained elevated. Notably, CIL accounts for about 83% of the coal supplied to the power sector in India, while nearly 80% of its total offtake goes to power utilities.

Grid operators turn to gas-based power

The sluggish progress of southwest monsoon has also prompted the country’s top grid operator to turn to expensive gas-based power this summer. On June 29, Grid Controller of India (Grid India) issued an advisory asking gas-based power stations to plan fuel procurement arrangements, anticipating the need for additional gas-fired generation for 10-15 days in July.

The assessment is based on projected demand, planned and forced outages of generating units, hydro, renewable generation profiles and present weather information available on IMD, the advisory read. Similar advisories were issued for June as well. This comes as the conflict in West Asia has cast a shadow over fuel availability for gas-based power plants this year. During April-June period, gas-based power generation fell to 6,594.81 MU from 8,794.35 MU in the same period last year, marking a 25% y-o-y decline. Even though gas-based power accounts for only a small share of India’s overall generation mix, it plays a crucial rebalancing role during evening peak hours.