+
Power Grid Rs 1.48 Trillion Pipeline Strains Execution Capacity
POWER & RENEWABLE ENERGY

Power Grid Rs 1.48 Trillion Pipeline Strains Execution Capacity

India’s state-run transmission giant Power Grid Corporation of India Limited is under growing pressure as execution challenges mount against a massive renewable pipeline. The company is managing a work-in-hand pipeline of about Rs 1.48 trillion (tn), while companies across the sector target around Rs 3 trillion (tn) in capital expenditure through FY32 and a revised outlay of Rs 32,000 crore (Rs 320 billion (bn)) for FY26 alone. This rapidly expanding capex cycle is stretching organisational bandwidth.

The strain is manifest in rising renewable curtailment and strained evacuation infrastructure, particularly in Rajasthan where curtailment rose from eight point five per cent to 51.5 per cent between March and August 2025. Around 4,000 megawatts (MW) of wind and solar capacity has already been affected and estimates indicate this may rise to 6,000–8,000 MW as transmission additions lag generation. These constraints are contributing to project timeline shocks and delivery bottlenecks.

The report highlights concentration risks because the company controls around 84 per cent of India’s inter-regional transmission capacity and secured about 53–57 per cent of competitive project awards in FY25. InGovern has recommended capping annual allocations to any single developer at about 50 per cent to reduce systemic execution risk. Several interstate transmission projects are running six to 12 months behind schedule, with some reporting only around three per cent physical progress despite nearly 28 per cent of scheduled time having elapsed.

Financial effects are evident as return on net worth declined from 18.5 per cent in FY23 to around 15.3 per cent annualised in the first nine months of FY26, while capital work-in-progress stands at around Rs 1.2 tn as of April 19, 2026 and leverage is elevated with a debt-to-equity ratio of about 1.45 times. Dividend payouts have fallen from Rs 14.75 per share in FY22 to Rs nine in FY25 and investor returns have lagged the broader market. The report urges greater transparency, disciplined project intake and a shift towards value over volume to align project awards with execution capacity.

India’s state-run transmission giant Power Grid Corporation of India Limited is under growing pressure as execution challenges mount against a massive renewable pipeline. The company is managing a work-in-hand pipeline of about Rs 1.48 trillion (tn), while companies across the sector target around Rs 3 trillion (tn) in capital expenditure through FY32 and a revised outlay of Rs 32,000 crore (Rs 320 billion (bn)) for FY26 alone. This rapidly expanding capex cycle is stretching organisational bandwidth. The strain is manifest in rising renewable curtailment and strained evacuation infrastructure, particularly in Rajasthan where curtailment rose from eight point five per cent to 51.5 per cent between March and August 2025. Around 4,000 megawatts (MW) of wind and solar capacity has already been affected and estimates indicate this may rise to 6,000–8,000 MW as transmission additions lag generation. These constraints are contributing to project timeline shocks and delivery bottlenecks. The report highlights concentration risks because the company controls around 84 per cent of India’s inter-regional transmission capacity and secured about 53–57 per cent of competitive project awards in FY25. InGovern has recommended capping annual allocations to any single developer at about 50 per cent to reduce systemic execution risk. Several interstate transmission projects are running six to 12 months behind schedule, with some reporting only around three per cent physical progress despite nearly 28 per cent of scheduled time having elapsed. Financial effects are evident as return on net worth declined from 18.5 per cent in FY23 to around 15.3 per cent annualised in the first nine months of FY26, while capital work-in-progress stands at around Rs 1.2 tn as of April 19, 2026 and leverage is elevated with a debt-to-equity ratio of about 1.45 times. Dividend payouts have fallen from Rs 14.75 per share in FY22 to Rs nine in FY25 and investor returns have lagged the broader market. The report urges greater transparency, disciplined project intake and a shift towards value over volume to align project awards with execution capacity.

Related Stories

Gold Stories

Next Story
Products

Interio by Godrej launches modular workplace solutions

Interio by Godrej has launched Workscapes, a modular workplace solutions category designed to help organisations configure and adapt workspaces to changing requirements. The portfolio combines mobile and compatible furniture and support elements that can be rearranged across different work modes without changes to fixed layouts.Workscapes includes Collaboration Tables, Privacy Solutions, Mobile Markerboards and Space Dividers, Power Solutions, Storage and Support Elements, Meeting and Presentation Tools, and Seating Elements. The range is designed for focused work, collaboration, informal disc..

Next Story
Infrastructure Urban

CAFE-III Gives Auto Industry Investment Clarity

The government’s new Corporate Average Fuel Economy (CAFE-III) norms have provided the automobile industry with a clearer framework for technology investments, according to industry representatives. The framework seeks to balance environmental objectives with flexibility for manufacturers while encouraging the adoption of flex-fuel vehicles and biofuels. Society of Indian Automobile Manufacturers (SIAM) President Shenu Agarwal said the five-year framework would give automakers greater predictability to plan investments and accelerate innovation. He said the regulation established annual targ..

Next Story
Infrastructure Energy

Mines Ministry to Auction Two Offshore Mineral Blocks in Andaman Sea

The Ministry of Mines will launch an auction of two offshore mineral blocks in the Andaman Sea on Thursday, seeking to unlock India’s offshore mineral potential and strengthen long-term mineral resource security. The blocks will be offered under a composite licence, which permits exploration and development activities in accordance with the applicable regulatory framework. The ministry said the auction was intended to encourage systematic exploration, attract investment and promote the use of advanced technologies for offshore mineral exploration and development. The initiative is also aimed..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code