Budget 2025: Fast expansion of India’s power transmission network should take centre stage, say experts

.

India has set a target to have 777 gigawatts (GW) of power generation capacity, including 500 GW from clean sources and about 277 GW from fossil fuels, to meet the projected peak demand of about 335 GW by 2030. For all of this upcoming mega power generation capacities to be actually put to use, the government must focus on building a widespread transmission network and doing so in record time will be the most crucial aspect, according to industry experts.

On its part, the government is likely to extend its Green Energy Corridor (GEC) initiative, which is aimed exclusively for evacuating renewable power, at least two officials involved in the project said.

Pratik Agarwal, managing director, Sterlite Power Transmission Limited, told Moneycontrol that significant funding should be directed towards strengthening domestic manufacturing in the sector. He explained funding is needed to accelerate the development of cutting-edge technologies, particularly in areas like submarine cables, HVDC or high-voltage direct current technology, and strategic communication systems, to outpace global advancements.

Secondly, he said the government must continue with the waiver on transmission charges for the renewable sector as it has been a crucial policy move. “Budget 2025-26 is a pivotal moment for India’s energy future. Continued support is vital to maintain the momentum and ensure that C&I (commercial and industrial) consumers increasingly choose renewable energy in alignment with the 500 GW mission. The budget should prioritise allocating at least Rs 5,000 crore for the extension of the ISTS (Interstate Transmission System) waiver for another term,” Agarwal said.

The mission Agarwal was referring to is the government's target of achieving 500 GW of energy from environment-friendly sources by 2030.

Jitendra Mamtora, chairman, Transformers and Rectifiers (India) Ltd, said they expect the production-linked incentive (PLI) scheme to be extended to the transformer industry. “Under the Make in India policy of the government, incentives should be given to the transformer Industry. The transformer market will witness stupendous growth due to surge in power demand,” he told Moneycontrol, adding that customs duty should be eased on raw materials not produced in India such as electrical steel.

“Besides, the government can also consider a 15 percent export incentive to compete with Chinese OEMs (original equipment manufacturers) in the overseas market,” Mamtora said.

The government has outlined an ambitious plan to enhance India’s power transmission infrastructure, with a total expenditure of Rs 9.12 lakh crore earmarked for capacity augmentation by 2032. The National Electricity Plan (Transmission) aims to increase inter-regional transmission capacity from the current 119 GW to 143 GW by 2026-27, and further to 168 GW by 2031-32. This comprehensive plan includes the addition of 191,474 circuit kilometres of transmission lines and 1,274 gigavolt ampere (GVA) of transformation capacity at voltage levels of 220 kV and above over the next decade.

Furthermore, 33.25 GW of HVDC bi-pole links are also planned, emphasising the integration of new technology, cross-border interconnections and private sector participation in the transmission sector.