A pause on new thermal plants makes eminent sense. Even better if States close their old, inefficient plants and take over distressed new plants. Lack of demand is the crucial missing cog. States can reduce industrial power tariffs to stimulate bulk consumption. They can double down on distribution— to reduce losses, bring efficiency and connect remaining households—with smart metering, high voltage transmission, upgraded transformers, underground cabling and new connections.

Government companies may help to rescue stressed private power plants