India’s transmission network is entering an inflection point where long-distance High Voltage Direct Current (HVDC) corridors and digitally enabled smart infrastructure are becoming central to economic planning. This shift aligns strongly with the Union Budget 2025–26, where infrastructure outlay stands at ₹11.21 lakh crore, of which ~47% is directed towards transport and power, signalling how grid modernisation is now viewed as a growth determinant rather than a sectoral utility.
From an economic standpoint, this transition carries direct implications for cost competitiveness. Manufacturing, data centres, renewables, and even urban infrastructure depend on a stable, congestion-free backbone. PowerGrid’s expansive national network—~180,239 ckm of EHV transmission lines and 1,337,513 MVA transformation capacity as of May 2025—forms the base on which these next-generation upgrades are being layered.
HVDC as the New Cost-Efficiency Engine
Publicly reported 2025 data indicate India’s HVDC backbone now includes 18,000 MW at the ±800 kV level and 13,500 MW at ±500 kV, reinforcing the strategic pivot to long-distance bulk transmission. Even though HVDC corridors demand higher upfront capex, their operational economics are compelling: line losses fall significantly, controllability improves, and power flow can be modulated with precision—directly lowering the per-unit cost of transmission for load-heavy industrial clusters.
These efficiencies matter from a financial viewpoint. Lower technical losses reduce the passthrough burden on DISCOMs, stabilise tariffs, and improve cash-flow predictability—an area where utilities traditionally experience volatility. As renewable penetration increases, HVDC’s ability to manoeuvre asynchronous grids will increasingly determine how smoothly 50+ GW of incoming solar and wind capacity can be absorbed.
Significant Investments Supporting Massive Expansion
India’s power transmission sector is entering one of its most transformative phases, backed by significant investment commitments and the urgent need to integrate large-scale renewable energy into the grid. Between FY2025 and FY2030, the country is expected to witness investments of ₹2.5–3.5 trillion, according to industry estimates, including insights from Juniper Green Energy. This is nearly on par with, or even slightly above, the ₹2.6 trillion invested during the previous five-year period (FY2019–FY2024).
This steady rise reflects India’s growing focus on strengthening its national grid to handle soaring electricity demand, rapid urbanisation, and an accelerating shift toward green energy.
Looking beyond 2030, India is planning an even deeper transformation. The government has outlined a roadmap estimating ₹9.16 lakh crore (approximately $107 billion) in investments for expanding transmission infrastructure by 2032.
This ambitious push aims to:
⦿ Support the integration of 500 GW of non-fossil fuel capacity
⦿ Build transmission corridors for large renewable energy parks
⦿ Ensure grid stability in the face of rising renewable intermittency
⦿ Expand inter-regional transmission capacity to reduce congestion
These developments are altering planning assumptions for utilities, regulators, and investors. Many stakeholders I interact with believe that the transmission segment is transitioning from a linear infrastructure model to a data-driven network model.
Conclusion
Transmission 2.0 represents a structural shift in how India manages its power flows. HVDC corridors, digital substations, smart metering, and automated controls are redefining the country’s power backbone. As India continues to expand renewable energy and explores new avenues such as green hydrogen, the readiness of its transmission network will determine the pace and quality of this transition.
2025 has made it clear that modern transmission infrastructure is not just a support system for energy transition. It is its enabling core.
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