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India's Green Corridor: ₹1.86 Lakh Crore Power Push
3 Oct
Summary
- Government approves Green Energy Corridor Phase-III with a ₹1.86 lakh crore outlay.
- Scheme aims to evacuate 135 GW of renewable energy by FY33.
- Focus on intra-state transmission systems, allocating ₹1.36 lakh crore.
The Indian government has greenlit the Green Energy Corridor Phase-III, a comprehensive plan with a project outlay of ₹1.86 lakh crore. This initiative is designed to overcome limitations in transmission lines, substations, and grid capacity, ensuring efficient power distribution nationwide.
The scheme's primary objective is to support the evacuation of up to 135 gigawatts (GW) of renewable energy by FY33. A significant portion, ₹1.36 lakh crore, is specifically allocated for intra-state transmission systems. This investment is set to create a sustained pipeline of work for the power transmission industry.
Three key infrastructure companies, KEC International, Power Grid Corporation of India, and Kalpataru Projects International, are well-positioned to benefit. They offer expertise in building transmission lines, expanding substations, and manufacturing essential grid equipment. The success of this ambitious plan hinges on their execution capabilities.
KEC International, a global EPC player, has a strong Transmission & Distribution order book exceeding ₹25,000 crore. Power Grid Corporation of India, the country's largest transmission utility, is accelerating capital deployment with a FY27 capex target of ₹37,000 crore.
Kalpataru Projects International is also set to gain, with its T&D business forming its largest segment and a substantial order book. The company boasts strong profitability and a low net debt-to-equity ratio, making it a significant contender in the evolving transmission landscape.
