India needs to invest ₹5-6 lakh crore in power transmission by 2032 to support renewable energy. However, persistent delays in land acquisition and project execution pose risks to developers. Data shows only 12% of recent competitive-bid projects were finished on time, leading to power evacuation hurdles.
India is gearing up for a massive expansion of its power transmission grid, with an estimated requirement of ₹5-6 lakh crore in capital spending between fiscal years 2027 and 2032. This move is essential to handle the rapid rise in renewable energy generation, with the government aiming to integrate over 900 GW of non-fossil fuel capacity by 2035-36. To achieve this, the country needs to add approximately 20,000 circuit kilometers of transmission lines and 120 GVA of substation capacity every year over the next six years.
Order Books Rise Amid Execution Fears
The anticipated surge in infrastructure building is already showing up in the order books of transmission equipment makers. Recent reports indicate that order inflows for these manufacturers have more than doubled since FY22. While this points to strong demand, rating agency ICRA has highlighted that the sector faces real-world supply constraints. A shortage of skilled labor and limited manufacturing capacity for key equipment could act as a bottleneck for project completion.
Project Delays and Developer Impact
Despite the long-term potential, execution remains a major challenge. Transmission projects are frequently stalled by land acquisition issues, right-of-way disputes, and slow regulatory approvals. A review of projects awarded through the tariff-based competitive bidding route shows that only 12% were completed by their scheduled date as of March 2026. On average, delayed projects have missed their deadlines by ten months, with some stretching up to three years.
These delays create a direct risk for renewable energy developers. When transmission lines are not ready in time, generated power cannot reach the grid. This leads to curtailment, where generators are forced to reduce their output. This problem is particularly acute in states like Rajasthan and Gujarat, which have seen high levels of renewable energy capacity added. As of May 2026, renewable projects relying on temporary access routes are facing significant curtailment during peak hours, sometimes reaching 50% to 60%.
What Investors Should Monitor
Looking ahead, the successful integration of 107 GW of renewable energy projects planned between FY27 and FY31 depends heavily on grid readiness. Investors should monitor the commissioning timelines of these transmission projects, as any further slippage could hurt the financial performance of renewable energy developers. The ability of equipment manufacturers to scale up capacity and manage raw material costs will also be a key factor in determining profit margins across the sector.