The budgetary allocation to power sector Central Public Sector Undertakings (CPSUs) was increased at least 17 percent to Rs 93,200 crore in the interim Budget 2024, compared to the revised estimate of Rs 79,616 crore in 2023-24.
Among the listed companies, the highest increase in the allocation was for Power Grid Corporation of India Limited (PGCIL) with Rs 12,250 crore, an increase of 39 percent from Rs 8,800 crore in the revised estimate for 2023-24. This signifies the country's current need for laying thousands of square kilometres of transmission lines to meet the upcoming large capacities of renewable energy.
Power sector PSUs see 17% increase in Budget allocation
Power Grid is executing India’s ambitious Green Energy Corridor (GEC) for evacuation of 13 GW renewable energy from Ladakh. The renewable energy will pass through Himachal Pradesh and Punjab, after which it will end in Kaithal in Haryana, where it will be integrated with the national grid.
India aims to achieve 50 percent cumulative installed power generation capacity from non-fossil fuel sources by 2030. For this, the country needs to add about 50 GW per annum of renewable energy capacity for the next five years, starting in 2024. So far, India has been able to add only about 15 GW each year.
The lowest allocation was made to India's largest state power generating company NTPC Ltd, which got Rs 22,700 crore as against Rs 22,454 crore in the revised estimate for 2023-24.
To be sure, all CPSUs also put in their own money as part of their capital expenditure for projects. Central government financial grant is only a part of the total Capex of such CPSUs.
With several hydropower projects under construction, NHPC Ltd received 31 percent more budgetary allocation, which increased to Rs 11,762 crore from Rs 9,006 crore. Currently, projects totalling 31,000 MW are under the pipeline. India's current operational hydropower capacity is nearly 47,000 MW.
Also read: MC Exclusive | RK Singh vows to double India's hydropower capacity
In FY25, the 2,000 MW Subansiri Lower project, under construction in Arunachal Pradesh and Assam, is likely to be fully commissioned by December. Besides, two units of the delayed Parbati-II project in Himachal Pradesh will start operations in April.
Among other listed power sector PSUs, IREDA which comes under the Ministry of New and Renewable Energy received 26 percent higher allocation, while SJVN saw the same increase by 20 percent.
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