25-05-2025
Is India Missing The Spark? Transmission Sector Needs Private Surge
Authored by GP Upadhyaya, IAS (Retd.), DG – EPTA and Dr Manvendra Deswal, DDG – EPTA: India's power transmission sector is poised for significant growth with an estimated Rs 10 lakh crore ($120 billion) investment envisaged by 2032 to achieve the stated NEP (National Electricity Plan) goals. Transmission capacity is expected to increase fivefold in the next eight years itself with over 90% of projects expected to be awarded through TBCB (Tariff Based Competitive Bidding) instead of RTM (Regulated Tariff Mechanism) highlighting the importance of private sector. This ambitious expansion is fuelled by rising electricity demand, renewable energy integration and infrastructure modernization.
News18
Private sector participation in India is not a recent phenomenon – in fact, Electricity Act, 2003 and Tariff Policy, 2006 (amended in 2016) laid down the legal framework to encourage private sector participation in the transmission sector. Besides, the Ministry of Power (MoP) issues periodic guidelines and amendments to Standard Bidding Documents (SBDs) to facilitate competition and attract private investment. An Empowered Committee oversees the identification and bidding process for interstate transmission (ISTS) projects, with several of them already awarded and under implementation via private Transmission Service Providers (TSPs).
