Around ₹5-6 trillion will be pumped as a capital expenditure on India’s power transmission of FY27 and FY32 to scale up its grid network for integrating rapid renewable energy capacity, according to ICRA Ltd.
ICRA stated that the strategic investments will mainly focus on expansion of the current transmission infrastructure, increasing evacuation capacity and building new transmission pathways leading towards India's target of reaching over 900 GW of non-fossil fuel capacity by 2035-36. This also includes approximately 548 GW of solar and wind power.
Furthermore, in order to meet the targets set forth by the National Electricity Plan, the sector will need yearly additions of 20,000 circuit km in transmission lines and 120 GVA in substation capacity.
According to ICRA, order backlogs for transmission equipment makers have doubled since FY22. However, with massive investments expected, project timelines could slip unless manufacturers quickly scale up production, address labor shortages, and resolve supply chain constraints.
The report by ICRA also underscores that Projects awarded under the tariff-based competitive bidding (TBCB) route face persistent delays due to ongoing execution challenges such as land acquisition, right-of-way (RoW) issues, pending regulatory approvals.
