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Future measures and programme to accelerate capex in the sector

ICICIdirect Research 13 Jun 2025 DISCLAIMER

To reduce right of way (RoW) issues for adding transmission lines, RoW compensation linked to market value of land and compensation is increased to 200% from 85% of land value for towers and to 30% from 15% previously for RoW corridor. This is expected to accelerate the pace of transmission capacity addition.

Roll out Ultra High Voltage Alternating Current (UHV AC) Transmission System: Nine lines of 1100 kV have been identified for development by 2034 where the Investment would be Rs 53,000 crore.

Government has announced a second viability gap funding of ₹5400 crore for 30 GWh of storage capacity (BESS and PSP). Existing scheme in works with ₹3670 crore support for 13.2 GWh of storage capacity translating into ₹28 lakh per MWh of energy storage.
Focus on privatization of discoms to improve their financial conditions

Development of Indian carbon market by 2026 and setting mandatory targets of emissions intensive industries which will have a positive rub off on demand renewable energy certificates thereby fueling for further capex in the renewable segment.

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