India's power transmission infra set for Rs 9 trillion upgrade as renewable push accelerates: Report
New Delhi, May 25
India's power transmission infrastructure is headed for a massive investment cycle, with nearly Rs 9 trillion in government-committed transmission capex expected till 2032, according to a report by Kotak Neo.
The report said the country's clean energy transition is no longer just about adding solar parks and wind farms, but also about building the grid infrastructure needed to move electricity efficiently across regions.
"India is adding 470 GW of renewable capacity. Every watt of that power needs wires, transformers, substations, and transmission lines before it can reach the grid," the report noted.
India's installed renewable energy capacity stood at 226 GW as of June 2025, nearly three times the 76 GW recorded in 2014. Over the next decade, the country is expected to add another 470 GW of solar and wind energy capacity, while power demand is projected to grow at a CAGR of 6.4 per cent till 2030, the report added.
According to the report, High-Voltage Direct Current (HVDC) transmission systems are likely to play a critical role in the transition, especially as renewable projects move farther away from consumption centres.
"India's HVDC market is expected to grow from USD 15 billion in 2025 to USD 31 billion by 2035," the report said.
The report highlighted that annual transmission capex currently stands at around USD 8-9 billion, while large-scale projects typically take three to five years to complete, offering long-term visibility for equipment manufacturers.
It also pointed to rising demand from sectors such as data centres, railway electrification, electric vehicles, and industrial expansion, all of which will require stronger transmission and distribution infrastructure.
At the centre of the transmission buildout is Power Grid Corporation of India, whose actual capex in FY26 exceeded its revised target and reached Rs 35,540 crore, the report said. The company has planned capex of Rs 1.08 lakh crore between FY26 and FY28 and an estimated business pipeline of Rs 3.06 lakh crore through FY32.
However, the report cautioned that execution delays, land acquisition challenges, raw material price volatility and timing of HVDC orders remain key risks for the sector.
"This is not a one-time capex cycle. It is a decade-long infrastructure buildout," the report added.
— ANI
Reader Comments
Good initiative but I'm a bit skeptical. Land acquisition has always been a nightmare for infrastructure projects in India. We've seen so many delays in the past. The report itself mentions that as a risk. Hope the government has a solid plan to handle that.
Impressive numbers! 470 GW of renewable capacity is a massive target. The HVDC technology angle is interesting too - that's definitely going to be a game-changer for long-distance power transmission. India is positioning itself well for the energy transition.
Power Grid Corp is really stepping up! Rs 35,540 crore capex in FY26 alone? That's massive. But I hope this investment also reaches the rural and semi-urban areas where we still face frequent power cuts. Transmission is not just about big cities and industrial zones.
As someone living in a tier-2 city, I really hope this translates into more reliable power. We have solar panels at home but the grid itself is so unreliable. This Rs 9 trillion upgrade should mean less power cuts and better voltage for everyone. Let's hope they deliver! 🤞
Electric vehicles and data centres are going to add so much load. I work in the EV charging infrastructure space and let me tell you, the grid is already stressed in many places. This investment can't come soon enough. Also, good to see HVDC getting the spotlight.
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