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Transmission & Distribution – The Next Leg of India's Power Capex Cycle

ICICIdirect Research 21 Aug 2026 DISCLAIMER

PM Modi explicitly framed energy security as a strategic requirement. As India's generation capacity rapidly expands, the focus of the power sector is shifting towards transmission and distribution (T&D), which has emerged as the biggest bottleneck to the country's energy transition. The integration of large-scale renewable capacity, rising electricity demand and higher inter-regional power transfers require significant investments in transmission lines, substations, and grid infrastructure.
With peak power demand expected to nearly double from ~238 GW to ~458 GW by FY32, expansion of the transmission network has become essential to ensure reliable power evacuation, reduce renewable curtailment, and strengthen grid resilience. According to the National Electricity Plan (NEP), India is expected to invest ~₹9.2 lakh crore in T&D infrastructure during FY25–32E, including ₹6.6 lakh crore in interstate transmission and ₹2.7 lakh crore in intrastate networks.
Key beneficiaries: Power Grid Corporation, which owns ~84% of India's interstate transmission network, along with private developers such as Adani Energy Solutions, is expected to remain the key beneficiary of transmission investments. 
The capex cycle is expected to benefit the broader ecosystem, including power equipment manufacturers (Hitachi Energy, Siemens Energy, GE Vernova T&D, CG Power), EPC players like (Kalpataru Projects, Larsen & Toubro), and Component companies like (Quality Power & KSH International). 

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