Govt races to build transmission firms amid push to meet 2030 clean energy goal
In the first half of 2025, more than 30 power sector firms—mostly transmission companies and infrastructure investment trusts—were incorporated, ministry of corporate affairs data show. The number of power sector enterprises established this year by the Union government jumped from two in February to 10 in June.
India has made rapid progress in adding renewable power capacity—its non-fossil fuel capacity of 242.8 GW accounts for about half of the total installed capacity of 484.8 GW—but the transmission infrastructure has not kept pace. India is targeting 500 GW of clean energy capacity by 2030.
A wider and robust transmission network is required also because the addition of renewable power such as solar and wind energy increases chances of grid instability and largescale power outages as these are intermittent sources of power.
In 2024-25, 8,830 circuit kilometres (ckm) of transmission network was added, nearly 38% lower than the 14,203 ckm added in FY24, show data from the Central Electricity Authority (CEA).
But in the first two months of this fiscal year (April-May), transmission capacity addition has gained pace—with 620 ckm of transmission lines added, up from 391 ckm in the same year-ago period.
Overall, India currently has a power transmission network of 495,405 ckm, and as per the National Electricity Plan. An additional 191,000 ckm of transmission lines would be required by 2031-32.
According to the National Electricity Plan for transmission released by the CEA in October, this will require a cumulative investment of ₹9.15 trillion in India's power transmission sector to ensure steady power supply as well as add battery storage capacity.
The plan entails integration of 10 GW of offshore wind capacity, 47 GW of battery energy storage systems, and 30 GW of pumped storage plants. Additional transmission capacity would also cater to the needs of green hydrogen and green ammonia manufacturing hubs.
As India's transmission capacity addition gains pace, the focus will shift from inter-state transmission systems to intra-state transmission systems, leading to greater role of state agencies and companies, said Alok Kumar, former secretary in the Union ministry of power.
As the 100% waiver of ISTS (inter-state transmission system) charges for renewable energy ended in June, and there would be a gradual decline in the waiver, the focus would now be more on the intra-state transmission and expansion at the state-level," he said.
Inter-state transmission system charges are fees payable by developers to transmit electricity from one state to another.
Renewable energy projects completed by 30 June are being offered a 100% waiver in ISTS charges for 25 years. Developers who complete their projects on or before 30 June 2026 will be offered a 75% waiver for 25 years, and projects commissioned by 30 June 2028 will get a 25% waiver. Projects that remain incomplete beyond 30 June 2028 will not be offered any waiver.
More power to state-run projects
State-run power sector companies are allowed to spend ₹85,838 crore towards capital and operational expenditure this financial year, about 21% more than in FY25, Union Budget documents show. This includes debt and internal resources.
The parent entities behind the 10 state-run power enterprises established this year include NLC India Renewables Ltd, which is the green energy arm of NLC India Ltd; NTPC Green Energy Ltd, a subsidiary of NTPC Ltd; Power Finance Corp.; Coal India Ltd; and Gail India Ltd, show data from the ministry of corporate affairs.
In addition, PFC Consulting Ltd, a subsidiary of Power Finance Corp., set up multiple transmission projects, including Wagdari Transmission Ltd and Saswad Transmission Ltd.
REC Power Development and Consultancy Ltd, a unit of state-owned REC Ltd, established special purpose vehicles Rajgarh Neemuch Power Transmission Ltd, Ananthapuram II Power Transmission Ltd, and Davanagere Power Transmission Ltd to step up India's power transmission capacity.
Earlier this month, the Cabinet Committee on Economic Affairs approved a special exemption for NLC India Ltd to invest ₹7,000 crore in NLC India Renewables Ltd. NIRL, in turn, would invest in various projects directly or through the formation of joint ventures without having to obtain approval.
This investment is exempted from the 30% net worth ceiling stipulated by the Department of Public Enterprises for overall investment by central public sector companies in joint ventures and subsidiaries, allowing NLC India Ltd and NIRL greater operational and financial flexibility.
The exemptions aim to support NLC India Ltd's ambitious target of developing 10.11 GW of renewable energy capacity by 2030 and expanding this to 32 GW by 2047.
NIRL Assam Renewables Ltd and NIRL Rajasthan Renewables Ltd, which were established in May and June, respectively, are focused on solar, wind, and hybrid renewable energy projects.
NTPC-Mahapreit Green Energy Ltd, established in April, will focuson the development, operation, and maintenance of renewable energy parks, including ultra mega renewable energy power parks and other renewable energy projects in Maharashtra.
These will comprise solar, wind, and hybrid technologies, with or without energy storage solutions, and have a cumulative capacity of up to 10 GW.
NTPC-Mahapreit is a 74:26 joint venture between NTPC Green Energy and Mahatma Phule Renewable Energy and Infrastructure Technology Ltd.
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