According to ICRA’s report, India’s power transmission segment is expected to attract investments worth Rs 1,800 billion in the next five years from 2020-21 to 2024-25.
Reportedly, evacuation infrastructure for renewable energy (RE) projects will drive investments in the power transmission segment. In addition, with a shift in policy focus from conventional sources (coal and gas) to renewable power sources (wind and solar), the focus of the transmission segment is towards augmenting infrastructure for evacuation of power generated by RE projects. Further, Centre has lined up 14 transmission projects under the tariff-based competitive bidding (TBCB) route for evacuating power from 25 GW RE projects. In the past five-year period, power transmission segment of the Indian power sector has witnessed a healthy growth with average annual capex of around Rs 500 billion, in line with the significant growth seen in the installed power generation capacity. The investments in the power transmission segment have been led by the Power Grid Corporation of India Limited and by the state transmission utilities, followed by the private sector.