Power Transmission Infra Set for Rs.9 Trillion Upgrade
India's power transmission framework is set for a substantial investment phase, with approximately Rs.9 trillion in government-backed transmission capital expenditure anticipated by 2032, as per a report from Kotak Neo.
The report indicated that the nation's shift to clean energy now involves not only the installation of solar parks and wind farms but also the development of the grid infrastructure essential for transporting electricity effectively between regions.
"India is incorporating 470 GW of renewable energy capacity." The report stated, "Every watt of that power requires transmission lines, substations, transformers, and wires before it can access the grid."
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As of June 2025, India's renewable energy capacity reached 226 GW, almost triple the 76 GW noted in 2014. In the coming ten years, the nation is anticipated to increase its solar and wind energy capacity by an additional 470 GW, with power demand estimated to rise at a CAGR of 6.4 percent until 2030, the report noted.
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The report indicates that High-Voltage Direct Current (HVDC) transmission systems are expected to be essential for the transition, particularly as renewable initiatives are located further from consumption hubs.
The report indicated that India's HVDC market is projected to increase from $15 billion in 2025 to $31 billion by 2035.
The report emphasized that yearly transmission capital expenditures are approximately $8-9 billion, while significant projects generally require three to five years for completion, providing long-term clarity for equipment producers.
It also highlighted increasing demand from areas like data centers, railway electrification, electric vehicles, and industrial growth, all of which will need enhanced transmission and distribution infrastructure.
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Central to the transmission expansion is Power Grid Corporation of India, which reported an actual capex in FY26 that surpassed its adjusted goal, hitting Rs.35,540 crore, as per the report.
The company intends to allocate capex of Rs.1.08 lakh crore from FY26 to FY28 and has an estimated business pipeline of Rs.3.06 lakh crore until FY32. Nonetheless, the report warned that delays in execution, difficulties in acquiring land, fluctuations in raw material prices, and the timing of HVDC orders continue to pose significant risks for the industry.
This is not a single cycle of capital expenditure." The report stated, "It is a long-term infrastructure development spanning ten years."