New Delhi [India], September 24: India added 113,013 MVA of alternating-current (AC) transformation capacity to its grid in fiscal year 2025-26, reaching 90% of the Central Electricity Authority’s (CEA) 126,007 MVA target.
The national network had roughly 1,486 GVA of AC transformation capacity at 220 kV and above as of July 2026. India added 35,670 MVA in the first four months of FY27, while the full-year FY27 target stands at 158,339 MVA. Capacity has expanded at a 7% compound annual growth rate (CAGR) since FY19.
What the plan asks for
The National Electricity Plan for transmission, notified by the CEA, sets out 1,91,474 circuit km of new transmission lines and 1,274 GVA of transformation capacity to be added between 2022-23 and 2031-32, with 33.25 GW of HVDC bi-pole links alongside. Inter-regional transfer capacity is planned to rise from 120 GW to 168 GW by 2032, with estimated expenditure above ₹ 9.15 lakh crore.
The plan covering 2026-27 to 2035-36 calls for 137,500 circuit km and 827,600 MVA of substation capacity at an estimated ₹ 7.93 lakh crore. Distribution also has a separate programme under the Revamped Distribution Sector Scheme, which has an outlay of ₹ 3.03 lakh crore. Between 2014 and March 2026, 696,302 distribution transformers were added to the network under related distribution initiatives.
Where the load is coming from
Peak demand touched 270.82 GW in May 2026 against installed capacity of about 552 GW, while generation for FY26 stood at 1,845 billion units. India is targeting 500 GW of non-fossil capacity by 2030, increasing the need for transmission infrastructure, evacuation capacity and grid integration across a wider range of generation sources.
Installed data-centre capacity increased from around 400 MW in 2019 to nearly 1.8 GW in the first half of 2026, with a development pipeline of nearly 3.9 GW. Large data-centre campuses also require high-voltage power infrastructure and transformer capacity as part of their development schedules.
Where the shortfall bites
Transmission and transformation capacity is required before new generation assets can be fully connected and energised. Green Energy Corridor Phase II targets 24,488 MVA of substation capacity, while Phase III plans 229 GVA in aggregate.
India’s HVDC transformation capacity stands at 33,500 MVA, with more than half in the ±800 kV class. Current delivery timelines are around 11–15 months for 220 kV transformers, around 15 months for 400 kV units and 20–24 months for 765 kV transformers, according to the Ministry of Power.
Manufacturing qualification and capacity
Transformer manufacturing is an approval-based market. Manufacturers supplying higher-voltage equipment require suitable production and testing infrastructure, type tests, design validation and vendor approvals from utilities. These qualification requirements can extend the time needed for new manufacturing capacity to become eligible for utility and EPC orders.
At higher voltage levels, available manufacturing capacity depends not only on capital expenditure but also on testing capability, utility approvals, skilled labour and the time required to establish a production track record.
What to watch
Raw-material availability and pricing remain important factors. CRGO steel and copper are both import-linked and subject to price volatility. Price-variation clauses are commonly used in procurement contracts to address changes in input costs.
Working capital is another factor because transformer manufacturers typically carry inventory while supplying EPC contractors and utilities on extended collection cycles. Expansion therefore depends on both order flow and access to working-capital financing.
Skilled manpower is also important, particularly for the winding, assembly and testing of large power transformers. The pace of capacity addition can therefore depend on the availability of trained personnel alongside plant and testing infrastructure.
Sources
National Electricity Plan (Transmission), Central Electricity Authority / Ministry of Power — via Press Information Bureau, 2024–2026
(1,91,474 ckm; 1,274 GVA; 33.25 GW HVDC; inter-regional 120–168 GW; ₹ 9.15 lakh crore; 2026-27 to 2035-36 plan: 137,500 ckm, 827,600 MVA; ₹ 7.93 lakh crore)Central Electricity Authority transmission data, July 2026 — via CEA / T&D India
(4MFY27 transformation addition of 35,670 MVA; total transformation capacity ~1,486 GVA; FY27 target 158,339 MVA)“Demand Surge: key trends, growth drivers and outlook for the transformer industry” — Power Line Magazine, May 2026
(HVDC 33,500 MVA; RDSS outlay and distribution-transformer installations; Green Energy Corridor Phase II/III)Transformer delivery timelines — Ministry of Power, Rajya Sabha reply, 23 March 2026; data-centre capacity — Cushman & Wakefield, India Data Centre Market H1 2026, 8 September 2026
(220 kV: 11–15 months; 400 kV: ~15 months; 765 kV: 20–24 months)
