Page 159 - Hitachi IR 2025

• The National Electricity Plan outlines an increase
in the country's power transmission capacity by
35% by 2032, with an estimated investment of
` 9.16 Lakh Crores.
• India's data center market value is expected to
touch close to USD 6 billion (` 0.51 Lakh Crores)
to USD 7 billion (` 0.60 Lakh Crores) by 2027,
at a growth rate of 12% to 14% CAGR between
2024 and 2027.
• India’s railway modernization is on track, with
major advancements in high-speed rail, freight
corridors, renewable energy, station infrastructure
and safety systems.
• India has become the third-largest metro network
in the world, with the government focusing on
making it more powerful and advance and laying
multiple development projects, reshaping urban
travel and furthering connectivity.
• India has set an ambitious target of achieving
100 GW nuclear power capacity by 2047 to
reduce carbon emissions and meet future energy
demands. The government’s larger objective
of Viksit Bharat ensures energy reliability and
reducing fossil fuel dependency.
These expected and committed investments indicate
the country's energy segment's growth trajectory for
the immediate and upcoming future.
Investment in the energy sector
Growth in power consumption will be in tandem with
growth in India’s nominal GDP, which is expected
to cross USD 7 trillion (` 598.33 Lakh Crores) by
FY 2030‑31 from US$ 3.60 trillion (` 307.71 Lakh
Crores) in FY 2023-24, according to an estimate
by S&P’s Global Market Intelligence. Companies in
the Indian power sector ecosystem have witnessed
robust revenue growth and growing return on equity
in the past few years, driven by a clean-up of stressed
power assets, higher capacity utilisation and multi-
decadal infrastructure policies aimed at doubling
India’s installed capacity by 2030. Adequate financing
of power projects led by renewable energy will be
instrumental in achieving the near-doubling of installed
capacity in India by 2030.
Strengthening transmission and distribution
In the supply of power to consumers, the transmission
system plays a key role, acting as the vital link between
power-generating stations and the distribution system.
India’s major power load centers are in the northern,
western and southern regions. The skewed resource
distribution makes the robust transmission system
an imperative. This includes the establishment of
inter-regional corridors to seamlessly transfer power
from surplus regions to the areas that are deficient
in power generation to enable consumers across the
country to gain access to power. The power sector’s
transformation is driven by the nation’s energy goals of
achieving energy independence by 2047 and net-zero
emissions by 2070.
With an inter-regional transmission capacity of
1,12,250 MW, the National Grid ensures reliable power
transmission. Transmission lines spanning 4,64,286
ckm and a transformation capacity of 11,48,167 MVA
underscore India's prowess. Fueling this momentum,
plans envision adding 17,500 ckm of transmission lines
and 80,000 MVA transformation capacity annually over
the next three years.
The power transmission sector in India is on the cusp of a
massive expansion. It has transitioned into a congestion-
free, well-integrated and interconnected network,
upon being consolidated into one of the world’s largest
synchronous grids. An estimated investment of ` 10
Lakh Crores is required to double the power capacity
to 900 GW by 2032. The transmission sector is being
continuously strengthened and transformed with the
addition of transmission lines and inter-regional capacity
to expand the physical infrastructure of the grid.
The earlier strategic initiative of "One Nation – One
Grid – One Frequency" seamlessly connected regional
grids and enabled enhanced power availability and
transfer across the nation. The Government's visionary
'Transmission System for Integration of over 500 GW
Renewable Energy Capacity by 2030' identifies potential
renewable energy sites, aligning with sustainable goals.
The 'Revamped Distribution Sector Scheme' further
solidifies reliable power supply, with a significant USD
36.74 billion (` 3.14 Lakh Crores) allocation and USD
11.81 billion (` 1.01 Lakh Crores) support from the
Central Government.
Source: https://indiainvestmentgrid.gov.in/sectors/
transmission-and-distribution
The expansion of transmission and distribution networks,
alongside renewable generation, will ensure that India’s
power infrastructure can meet future consumption needs
efficiently. The country’s power sector is benefiting
from improved asset quality and supportive policy
reforms, reducing risks and enhancing financial stability
across projects.
Addition in India’s transmission capacity
Source Addition in
transmission
lines (ckm)
Addition in
transformation
capacity (MVA)
FY 2014-15 22,101 65,554
FY 2015-16 28,114 62,849
FY 2016-17 26,300 81,816
FY 2017-18 23,119 86,193
FY 2018-19 22,437 72,705
FY 2019-20 11,664 68,230
FY 2020-21 16,750 57,575
FY 2021-22 14,895 78,982
FY 2022-23 14,625 75,902
FY 2023-24 14,203 70,728
FY 2024-25 8,830 86,433
Source: https://powermin.gov.in/en/content/overview-0
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