Latest news with #AbhishekTyagi
Time of India
4 days ago
- Business
- Time of India
India needs massive investments for Net-Zero Goal by 2070; Private sector will be vital: Moody-ICRA
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel According to a joint report by Moody's Ratings & ICRA , highlights that India will require a huge investment in order to meet ambitious 2070 net-zero emissions norms particularly in the power report projects that over the next decade, these investments are projected to constitute 2 per cent of country's real GDP for the electricity value chain, encompassing power generation, storage, transmission and report also suggests that the country must manage the complex balance of energy security, affordability, and the transition to cleaner India's fast-growing economy will continue to rely on coal in the short to medium term. It adds a 32 to 35 per cent increase in coal-based generation capacity (around 70-75 GW) over the next 10 years, alongside the addition of 450 GW in renewable capacity."We expect the private sector to remain active in India's renewable energy sector, while government-owned companies will also increase their role," said Abhishek Tyagi, a Moody's Vice President and Senior Credit further added that, "Solar and wind power will dominate new generation capacity additions over the next 20-25 years, with smaller nuclear and hydropower additions."Furthermore, the report also expects a slowdown in road project execution in the near term despite a healthy FY2026 budgetary outlay of Rs 2.72 trillion for the Ministry of Roads, Transport and Highways (MoRTH)."With road awarding projected to improve only in second half of FY2026, the revenue growth of road developers is likely to remain subdued over the next 12-15 months, as it takes 6-9 months from project awarding to on-ground execution (first billing milestone)," said Ashish Modani, ICRA's Senior Vice President and Group Head, Corporate contrast, ports and data centers are emerging as key growth areas. Under the Maritime India Vision 2030, the government has committed substantial capex to expand port capacity. ICRA anticipates a 3 to 5 per cent increase in cargo volumes in FY2026, led by containerised cargo, petroleum products, and fertilisers, though global trade and tariff uncertainties pose risks.
Mint
4 days ago
- Business
- Mint
India must invest big to hit 2070 net-zero goal, says Moody's
Mumbai: Mumbai: India will need to invest about 2% of its real gross domestic product (GDP) annually in the power sector over the next decade to meet its 2070 net-zero pledge, Moody's Ratings said on Wednesday. The renewable energy sector is expected to add 450 gigawatts (GW) of clean energy capacity during this period, while coal-based power generation is also projected to rise by 32–35%, or 70–75 GW, to meet growing electricity demand. India, Moody's said, will need to balance the trilemma of energy security, affordability, and transition. According to the United Nations, net zero means cutting carbon emissions to a small amount of residual emissions that can be absorbed and durably stored by nature or through carbon dioxide removal measures, leaving zero emissions in the atmosphere. India announced its net-zero target for 2070 at the 26th session of the United Nations Framework Convention on Climate Change (COP26) in November 2021. 'We expect the private sector to remain active in India's renewable energy sector, while government-owned companies will also increase their role,' said Abhishek Tyagi, vice-president and senior credit officer, Moody's. 'Solar and wind power will dominate new generation capacity additions over the next 20-25 years, with smaller nuclear and hydropower additions,' added Tyagi. Foreign investment, both debt and equity, will remain an important source of capital to bridge funding gaps for energy transition infrastructure. Moody's has reportedly pegged the power sector's annual investment requirement at ₹ 4.5 trillion to ₹ 6.4 trillion ($53 billion to $76 billion) until FY2034-35, and at around ₹ 6-9 trillion annually over FY2026–51. Alongside the power sector, India's broader infrastructure landscape, including data centres, ports, and roads, is also seeing shifts in investment trends, according to Moody's Indian affiliate, Icra. Icra said major investments are lined up in data centres and ports, even as the awarding of new road projects has slowed. The capital outlay for the Ministry of Road Transport and Highways (MoRTH) remained healthy at ₹ 2.72 trillion for FY26. However, a shift in focus to private investment under the build-operate-transfer (BOT-Toll) model is delaying project rollouts. Under this model, a private firm finances, builds, and operates a toll road for a defined period before transferring ownership to the government. 'With road awarding projected to improve only in second half of FY2026, the revenue growth of road developers is likely to remain subdued over the next 12-15 months, as it takes 6-9 months from project awarding to on-ground execution (first billing milestone),' said Ashish Modani, senior vice-president and group head of corporate ratings at Icra. Road developers are expected to bid aggressively for central government projects to rebuild their shrinking order books, which will likely keep their operating profitability under pressure, Modani added.
Time of India
4 days ago
- Business
- Time of India
Around 450 GW renewable capacity planned; coal capacity to rise by 75 GW over 10 years: Moody's
New Delhi: India will require sustained investments equivalent to around 2 per cent of real GDP annually over the next decade across the electricity value chain to meet its 2070 net-zero emissions target, global rating agency Moody's said in a report. The report said the investment needs span power generation, storage, transmission, and distribution infrastructure. The power sector is a significant contributor to India's overall carbon emissions. Moody's said India is expected to add around 450 GW of renewable energy capacity over the next 10 years, but the country will also expand its coal-based power generation capacity by 32 to 35 per cent, or around 70 GW to 75 GW, due to strong economic growth. 'We expect the private sector to remain active in India's renewable energy sector, while government-owned companies will also increase their role,' said Abhishek Tyagi, Vice President and Senior Credit Officer, Moody's. 'Solar and wind power will dominate new generation capacity additions over the next 20–25 years, with smaller nuclear and hydropower additions,' Tyagi said. Moody's stated that securing diverse capital sources, including foreign investment in both debt and equity, will be crucial to address the funding gap in energy transition infrastructure. Slowdown in road construction; data centres and ports to draw capex: ICRA Moody's Indian affiliate ICRA said road construction activity is expected to remain slow in the near term, while segments such as data centres and ports are likely to receive significant investments supported by government spending, capital outlays, and a large pipeline of projects. The budgetary outlay for the Ministry of Road Transport and Highways (MoRTH) has been maintained at ₹2.72 lakh crore for FY26. 'The project awarding in the road segment has slowed down in the last 6–8 quarters as the focus is gradually shifting towards improving share of private investment through the BOT-Toll mode,' said Ashish Modani, Senior Vice President and Group Head, Corporate Ratings, ICRA. 'With road awarding projected to improve only in second half of FY2026, the revenue growth of road developers is likely to remain subdued over the next 12–15 months, as it takes 6–9 months from project awarding to on-ground execution (first billing milestone),' Modani said. ICRA said developers may bid aggressively for central government road projects to build order books, which could impact operating profitability. Under the Maritime India Vision 2030, the government has planned significant capex to augment port capacity and infrastructure. Cargo volumes are expected to grow by 3–5 per cent in FY26, mainly from container, petroleum products, and fertiliser segments. However, capacity additions may outpace demand in some port clusters, leading to potential pressure on pricing and utilisation. Data centres attract ₹1.6–1.8 lakh crore investment According to ICRA, the data centre segment is emerging as a key infrastructure investment area, with an estimated pipeline of ₹1.6–1.8 lakh crore for capacity addition over the next 5–6 years, supported by digitalisation and favourable policies. The number of data centre operators in India increased to 18 in 2025 from 9 in 2019. The rising competition has moderated rentals and increased payback periods. However, coverage metrics are expected to remain stable due to longer debt tenures of 12–15 years.>
