ICRA expects ₹5–6 lakh crore in power transmission capex between FY27 and FY32.
Land acquisition, RoW and regulatory approvals remain the biggest execution hurdles.
Only 12% of TBCB transmission projects were completed on schedule, delaying renewable energy evacuation.
Power transmission projects continue to face significant execution risks owing to challenges in acquiring land, ROW-related issues and regulatory approvals, according to Icra.
These delays impact projects' timelines and lead to grid curtailment-related issues for RE developers, thereby impacting their returns, the ratings agency said in a note.
Icra expects a significant uptick in capacity addition in the power transmission sector as the country gears up to integrate the upcoming renewable energy (RE) capacity in the grid.
1 June 2026
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The rating agency estimated the sector to deploy capex of ₹5-6 lakh crore between 2026-27 and 2031-32.
However, it cautioned that execution-related challenges persist, especially land acquisition and right of way (RoW), which result in delays in the completion of these projects.
Ankit Jain, Vice President and Co-Group Head, Icra Limited, said, "Power transmission projects continue to face significant execution risks owing to challenges in acquiring land, ROW-related issues and regulatory approvals, leading to delays in timely implementation".
"Most transmission projects awarded by the central nodal agencies through the tariff-based competitive bidding (TBCB) route have been delayed beyond their scheduled commissioning date (SCOD) due to these challenges." Of the total projects commissioned by March 2026 under this route, only 12% were completed within the scheduled timeline, while the balance was commissioned with a lag of two months to three years, with a median delay of over 10 months.
This delay in the transmission capacity addition impacts the risk of power evacuation for RE players, resulting in curtailment-related episodes.
