The inter-state transmission system sector will see a capital expenditure (capex) of around Rs 1 lakh crore over financial years 2026 and 2027. This is twice the capex of Rs 50,000 crore incurred between financial years 2024 and 2025. Crisil Ratings expects addition of 65-75 GW of solar and wind capacities over fiscals 2026-2027. Timely planning and commissioning of transmission capacities remains critical as the execution period of a transmission project is typically 2-4 years — twice that of a renewable energy project. The Ministry of Power has amended the land compensation guidelines for ROW for transmission projects to support faster execution of projects. The government expects transmission connectivity to be enabled for up to 60 GW of potential renewable capacity by fiscal 2027, according to the report. The report stated that credit profiles of developers remain supported by healthy cash flows and strong funding visibility. It added that developers are well placed to absorb the rising capex intensity and are well supported by recent fund raises aggregating to around Rs. 12,500 crore through equity capital markets.
