India’s power transmission sector is entering a new phase of growth as the country works to meet rising electricity demand and achieve its clean energy targets. According to a June 2026 report by ICRA, India will need a significant expansion of its transmission network over the coming years to support the rapid addition of renewable energy projects and ensure a reliable power supply across the country.
Over the past decade, India has steadily strengthened its power transmission infrastructure. Transmission line length has grown at a compound annual growth rate (CAGR) of 3.6%, while substation capacity has increased at a CAGR of 7.8% over the last nine years. During this period, inter-regional transmission capacity also expanded to 120 GW, enabling better transfer of electricity between different states and regions.
Despite this long-term progress, the sector faced challenges between FY2022 and FY2025. A slowdown in project awards, combined with execution issues, affected the pace of network expansion. However, the sector showed a strong recovery in FY2026, with around 12,139 circuit kilometers (ckm) of transmission lines and 1,13,013 MVA of substation capacity added during the year.
To support India’s long-term energy transition, the Central Electricity Authority (CEA) has prepared a detailed transmission development plan. The strategy aims to build both interstate and intrastate transmission systems capable of integrating 900 GW of non-fossil fuel power capacity by FY2036. Much of this new capacity will come from renewable energy-rich states. The plan also includes infrastructure for evacuating 76 GW of hydropower from the Brahmaputra Basin through advanced High-Voltage Direct Current (HVDC) transmission corridors.
According to ICRA, achieving the targeted transmission network of 6,27,000 ckm of lines and 2,171 GVA of substation capacity by March 2030 will require investments of around Rs. 5 trillion to Rs. 6 trillion between FY2027 and FY2032.
While the outlook remains positive, project execution continues to be a major concern. ICRA noted that only 12% of transmission projects awarded through the tariff-based competitive bidding (TBCB) route are completed within the scheduled timeline. Most projects face delays of more than 10 months, while some are delayed by as much as three years. The main reasons include Right of Way (RoW) disputes over land compensation, delays in forest clearances, supply chain disruptions, and extreme weather events such as floods and cyclones.
These delays are also affecting renewable energy developers. Around 33% of India’s 54.8 GW commissioned renewable energy capacity currently depends on Temporary General Network Access (TGNA). Limited transmission availability has led to frequent grid curtailments, particularly in western and northern India, forcing renewable power plants to reduce or stop generation without receiving financial compensation.
Despite these operational challenges, the financial health of the transmission sector remains strong. Payment security is supported by a pooled collection mechanism managed by the Central Transmission Utility of India Limited (CTUIL), which has helped maintain stable cash flows. As a result, Power Grid Corporation of India Limited (PGCIL) recorded collection efficiency of over 100% during FY2026. ICRA believes that resolving land acquisition issues, speeding up approvals, and improving project execution will be essential for strengthening India’s transmission network and supporting the country’s clean energy ambitions.
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