New Delhi, June 4
According to a joint report by Moody's Ratings & ICRA, highlights that India will require a huge investment in order to meet ambitious 2070 net-zero emissions norms particularly in the power sector.
New Delhi [India], June 4 (ANI): According to a joint report by Moody's Ratings & ICRA, highlights that India will require a huge investment in order to meet ambitious 2070 net-zero emissions norms particularly in the power sector.
The report projects that over the next decade, these investments are projected to constitute 2 per cent of country's real GDP for the electricity value chain, encompassing power generation, storage, transmission and distribution.The report also suggests that the country must manage the complex balance of energy security, affordability, and the transition to cleaner sources.
However, India's fast-growing economy will continue to rely on coal in the short to medium term. It adds a 32 to 35 per cent increase in coal-based generation capacity (around 70-75 GW) over the next 10 years, alongside the addition of 450 GW in renewable capacity.
"We expect the private sector to remain active in India's renewable energy sector, while government-owned companies will also increase their role," said Abhishek Tyagi, a Moody's Vice President and Senior Credit Officer.
He further added that, "Solar and wind power will dominate new generation capacity additions over the next 20-25 years, with smaller nuclear and hydropower additions."
Furthermore, the report also expects a slowdown in road project execution in the near term despite a healthy FY2026 budgetary outlay of Rs 2.72 trillion for the Ministry of Roads, Transport and Highways (MoRTH).
"With road awarding projected to improve only in second half of FY2026, the revenue growth of road developers is likely to remain subdued over the next 12-15 months, as it takes 6-9 months from project awarding to on-ground execution (first billing milestone)," said Ashish Modani, ICRA's Senior Vice President and Group Head, Corporate Ratings.
In contrast, ports and data centers are emerging as key growth areas. Under the Maritime India Vision 2030, the government has committed substantial capex to expand port capacity. ICRA anticipates a 3 to 5 per cent increase in cargo volumes in FY2026, led by containerised cargo, petroleum products, and fertilisers, though global trade and tariff uncertainties pose risks.
— ANI
Reader Comments
Good to see concrete projections! But 2070 seems too far - we need more urgency. Climate change impacts are already visible in our cities with extreme heatwaves. Why can't we aim for 2050 like developed nations? 🇮🇳
The coal expansion worries me. My hometown near Singrauli already suffers from terrible air quality due to power plants. We must find better balance between development and environment. Solar rooftops should be mandatory for all new buildings!
Private sector involvement is key! The government alone cannot handle this massive transition. Tax benefits for green energy startups would help. Also, we need better electricity storage solutions - saw many solar plants wasting energy in Rajasthan.
Data centers growth is positive but they consume so much power! Companies should be required to use renewable energy for these facilities. Otherwise we're just shifting the problem from one sector to another.
Road projects slowdown is disappointing. Our infrastructure needs keep growing with population. Maybe focus more on public transport instead of highways? Metro networks in all major cities would reduce emissions significantly.
As someone working in renewable sector, I'm happy to see the 450GW target! But land acquisition remains a big challenge. Farmers often oppose solar projects. Need better policies that benefit local communities too. 🌞
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.