ICRA has released a report, saying that India’s power transmission sector is expected to witness a strong investment cycle over the next six years, with capital expenditure (capex) projected at INR 5–6 trillion between FY2027 and FY2032.
The rating agency said the planned investments will focus on strengthening the existing transmission network, developing new power evacuation corridors, and expanding substation capacity to support India’s rapidly growing renewable energy portfolio.
The upcoming investments are backed by the Government of India’s plan to evacuate electricity from more than 900 GW of non-fossil fuel capacity by 2035–36, including nearly 548 GW of solar and wind power.
ICRA estimates that meeting this target will require the addition of around 20,000 circuit kilometres (ckm) of transmission lines and 120 gigavolt-amperes (GVA) of substation capacity annually, creating a sizeable opportunity for transmission developers and equipment manufacturers.
The report also noted that outstanding orders and fresh order inflows for key transmission equipment suppliers have more than doubled since FY2022, reflecting strong demand. However, supply-side constraints, including limited manufacturing capacity and shortages of skilled manpower, may slow execution.
Execution challenges remain a key concern for the sector. Delays in land acquisition, right-of-way (RoW) approvals, and regulatory clearances have significantly affected the timely commissioning of transmission projects awarded through the tariff-based competitive bidding (TBCB) route.
According to ICRA, only around 12% of TBCB transmission projects commissioned by March 2026 were completed within their scheduled timelines, while the remaining projects were delayed by two months to three years, with a median delay of more than 10 months.
The report highlighted that these delays have increased grid curtailment for renewable energy projects. As of May 2026, around 33% of the recently commissioned 54.8 GW renewable energy capacity was being evacuated through the Temporary General Network Access (T-GNA) route. Curtailment during solar generation hours remained between 50–60%, particularly in Rajasthan and Gujarat, while the southern region experienced relatively lower curtailment.
ICRA added that nearly 107 GW of solar, wind, hybrid, hydro, pumped storage, and thermal projects with granted connectivity are expected to be integrated into the Interstate Transmission System (ISTS) between FY2027 and FY2031. However, delays in transmission infrastructure could continue to affect renewable energy evacuation and project returns.
Ankit Jain, Vice President and Co-Group Head, ICRA Limited, said, “The projected transmission capex of INR 5–6 trillion entails strengthening of the existing infrastructure, adding evacuation capacities as well as new transmission routes to support the generation centres. The upcoming capex will be driven by the Government’s plan to evacuate power from over 900 GW of non-fossil fuel capacity by 2035–36.”
Jain added, “Power transmission projects continue to face significant execution risks owing to challenges in acquiring land, right-of-way issues and regulatory approvals. These delays impact power evacuation for renewable energy developers, resulting in curtailment-related episodes.”
He further said, “Out of the recently commissioned 54.8 GW renewable energy capacity, around 33% is being evacuated through the T-GNA route as of May 2026. Slippages in the timely commissioning of upcoming transmission infrastructure cannot be ruled out, which could impact renewable energy capacity additions and materially affect project returns.”
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