Power transmission segment to attract Rs 1.8 lakh cr investment by FY25: Report

ICRA expects an investment of Rs 1.8 trillion over the five-year period from FY2021 to FY2025 in the power transmission segment at all India level, driven by evacuation infrastructure for renewable energy (RE) projects. In line with the shift in policy focus from conventional sources (coal and gas) to renewable power sources (wind and solar), the focus of the transmission segment is towards augmenting the transmission infrastructure for evacuation of power generated by renewable energy projects.

Commenting on the investment prospects, Sabyasachi Majumdar, Group Head & Senior Vice President – Corporate ratings, ICRA, says, “The Government of India has lined up 14 transmission projects under the tariff-based competitive bidding (TBCB) route for developing transmission infrastructure for evacuating power from 25 GW renewable power projects and another six projects in the intra-state segment, providing healthy pipeline for private sector players. While there is likely to be a slowdown in electricity demand and investments in the sector in FY2021 amid the COVID-19 induced disruption, the same are likely to recover from FY2022 onwards.”

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