India Ratings and Research (Ind-Ra) has maintained a Stable rating outlook for transmission projects for FY26, supported by consistent regulations and expectations of steady operational performance. The agency highlighted significant capital expenditure plans and project awards during the first nine months of FY25 as major positives for the sector. Among 58 commissioned projects, only eight were completed on schedule, while the rest experienced an average delay of nine months. The Central Electricity Regulatory Commission (CERC) has been granting time extensions for delays caused by force majeure events, including route changes and approval setbacks. The Inter-State Transmission System (ISTS) under the tariff-based competitive bidding (TBCB) framework witnessed the awarding of 37 projects in the first nine months of FY25, with a combined capital outlay of Rs 1,016.75 billion. This represents an increase compared to the cumulative Rs 808.93 billion capital outlay for all TBCB projects completed between FY14 and the first eight months of FY25. Ind-Ra reported that the Power Grid Corporation of India Limited secured over 65% of awards in the ISTS-TBCB segment during FY25. The entry of new players into the segment has broadened the developer base, which the agency believes could enhance the value chain and reduce transmission costs for designated ISTS customers. The credit profile of operational ISTS assets remains stable, aided by CERC’s Sharing Regulations 2020, which provide a revenue-sharing mechanism and mitigate counterparty risks. Annual collection efficiency for these assets is projected to exceed 95%. However, intrastate assets in states such as Maharashtra, Uttar Pradesh, and Rajasthan exhibited moderate collection volatility during the first half of FY25. Ind-Ra noted that amendments to the Sharing Regulations in October 2023 introduced new revenue mechanisms for ISTS assets in deemed commercial operations date (COD) status. However, these projects face higher counterparty risks due to an unproven record of timely revenue collection.