New Delhi: India’s power transmission and distribution (T&D) sector is set to witness a massive infusion of around ₹9 trillion in capital expenditure as the power grid sees record renewable capacity expansion and an increase in demand.
According to a report by Motilal Oswal Financial Services, this boom is expected to come from almost 500GW of non-fossil fuel capacity that includes solar and wind farms across Rajasthan, Gujarat, and Ladakh that are expected to be set up by 2030. Transporting power from the source to the industrial and urban centers will offer T&D contractors an opportunity to grow here.
India’s peak power demand is already rising, with industrial demand and extreme weather conditions add to that. The massive investment outlook is creating a long term growth runway for electrical equipment manufacturers and EPC (Engineering, Procurement, and Construction) companies.
According to the report, though near-term constraints remain, there is a positive medium-term outlook, even as elevated utilisation levels are increasingly focusing on high voltage transformers that require longer production and testing cycles.
Demand continues to remain strong across both domestic and export markets, where transformer supply hasn’t met demand, offering export opportunities at favourable pricing conditions for manufacture₹
By 2032, the goal will remain to create a seamless ‘One Nation, One Grid and One Frequency’ system that helps the system maintain a 24×7 supply for a growing economy.
