Govt targets US$ 110 bn investment in power transmission by 2032

The government plans to expand India’s transmission network from 4.85 lakh circuit kilometers (ckm) in 2024 to 6.48 lakh ckm by 2032. Additionally, transformation capacity is expected to increase from 1,251 GVA to 2,342 GVA during this period.

The Indian government is expecting to attract investments of Rs 9.15 lakh crore in central and state transmission systems by 2032, as part of the revised National Electricity Plan (NEP), which is set to be released within the next 15 days.

Union Minister for Power, Manohar Lal Khattar, announced that the NEP (2023-2032) aims to meet a peak electricity demand of 458 GW by 2032, a significant increase from over 240 GW observed in 2023.

To support this growing demand, the government plans to expand the transmission network from 4.85 lakh circuit kilometers (ckm) in 2024 to 6.48 lakh ckm by 2032. Additionally, transformation capacity is projected to rise from 1,251 GVA to 2,342 GVA during the same period. The previous plan (2017-2022) resulted in the addition of approximately 17,700 ckm of lines and 73 GVA of transformation capacity annually.

The NEP will also see the introduction of nine new High Voltage Direct Current (HVDC) lines with a combined capacity of 33.25 GW, supplementing the existing 33.5 GW. The inter-regional transfer capacity is expected to increase from 119 GW to 168 GW, focusing on networks of 220 kV and above. This new initiative aims to address rising electricity demand while enabling the integration of renewable energy sources and green hydrogen into the grid.

Currently, India’s total thermal power capacity stands at 217 GW, with 28.4 GW under construction—14 GW likely to be commissioned by FY25, and an additional 58.4 GW in various stages of development. In the past 100 days, the power ministry has awarded contracts for 12.8 GW of new coal-based thermal capacity.

The government has also approved a 50 GW Inter-State Transmission System (ISTS) capacity, with a planned transmission network of 335 GW designed to evacuate 280 GW of Variable Renewable Energy (VRE) by 2030. The newly approved transmission projects will facilitate renewable electricity, including offshore wind power in Gujarat and Tamil Nadu, as well as support for green hydrogen and ammonia initiatives. The Minister reiterated that coal-based power will continue to play a crucial role until renewable energy sources are more viable, with expectations of needing coal until at least 2035.