Power Grid holds FY26 capex target at Rs 28,000–30,000 crore as execution speeds up

Supply-chain constraints remain an operational hurdle. Tyagi noted that transformers and GIS equipment require long lead times, saying Power Grid is now placing bulk orders “well in advance” so that “this constraint of transformer supply is not there.” HVDC equipment cannot be procured ahead of time, he said, because it is “specific to a specific project.”

Power Grid Corporation of India remains on track to meet its full-year capital expenditure target of around Rs 28,000–30,000 crore in FY26, supported by an expected pickup in project execution during the second half of the year. The company has already incurred Rs 15,385 crore of capex in the first half, well ahead of last year’s pace.

Chairman and Managing Director R.K. Tyagi told investors and analysts during the company’s Q2 FY26 earnings call that Power Grid expects to commission about Rs 20,000 crore worth of assets by March. “By March ’26, we should be in position to commission up to Rs 20,000 crore projects,” he said.

Tyagi said delays in right-of-way (ROW) permissions earlier in the year were largely the result of states taking time to adopt the Centre’s March 2025 compensation guidelines. He explained that under the new rules, valuation requires inputs from three different valuers, calling it “a methodology being used by Delhi, Haryana, and now other states.” He added that the process “took more time in Delhi,” but that the Ministry of Power is working to ensure decisions are finalised within one month.

Capex is set to rise over the next two years. “Last year, we did CapEx of about Rs 26,000 crores. This year, we are expecting about Rs 28,000 crores. Next year, it will be about Rs 35,000 crores,” Tyagi said. The company indicated that FY28 capex could be about Rs 45,000 crore.

One of the largest corridor investments, the Leh–Ladakh transmission project, has undergone a major design shift. Power Grid no longer plans to build it as an HVDC link. “We came to the conclusion that HVDC project may not be feasible,” Tyagi said, noting that the estimated cost has risen sharply. “That time cost was about Rs 20,000 crores but now cost is coming about ₹42,000 crores.” The company is now examining a 400 kV AC alternative that would cost “close to Rs 30,000 crores,” though it is still awaiting government direction before updating its capex plans.

Supply-chain constraints remain an operational hurdle. Tyagi noted that transformers and GIS equipment require long lead times, saying Power Grid is now placing bulk orders “well in advance” so that “this constraint of transformer supply is not there.” HVDC equipment cannot be procured ahead of time, he said, because it is “specific to a specific project.”

Looking ahead, Tyagi highlighted the government’s large transmission plan for the Brahmaputra basin, calling it a “huge opportunity.” The multi-phase scheme could involve more than Rs 6 lakh crore of investment over the next decade and beyond, though he said it remains at the study stage. He also indicated that these projects are “unlikely” to be awarded on a nomination basis and may be tendered competitively.