India’s renewable energy push, data centre growth: Why Power Grid wants cable and wire makers to ramp up production
State-owned Power Grid Corporation of India expects its capital expenditure to exceed the ₹40,000 crore invested in the previous financial year as it accelerates spending on transmission infrastructure to support India’s growing electricity demand.
The expansion of renewable energy capacity, rapid urbanisation and rising electricity consumption from data centres are expected to create significant investment opportunities across the power transmission and electrical equipment sectors.
Power Grid Chairman Vamsi Rama Mohan Burra has urged domestic cable and wire manufacturers to expand production capacity, improve product quality and ensure timely execution of orders to meet the anticipated increase in demand.
“Last year, we had a capex of about ₹40,000 crore. One single company, spending purely on transmission. And this year should be much higher,” Burra said at an industry event.
Addressing industry stakeholders, Burra emphasised that the growth of India’s transmission infrastructure and the electrical manufacturing industry was closely interconnected. He asked manufacturers to prepare for a substantial increase in orders as the country strengthens its electricity transmission network.
Power Grid may raise capex guidance
In May, Power Grid had initially projected capital expenditure of ₹37,000 crore for the current financial year. However, Burra indicated that the company could revise its guidance upwards, following a similar increase in its capex target during the previous fiscal year.
The company’s investment plans reflect the growing requirement for transmission infrastructure to connect electricity generation centres with consumption hubs across the country.
Power Grid spent more than ₹40,000 crore on capital expenditure in the previous financial year. The company now expects its investment outlay for the current fiscal year to surpass that level.
Transmission expansion creates opportunities for cable industry
Burra highlighted the growing opportunities for domestic manufacturers of wires and cables as India expands its electricity transmission network.
The Indian wires and cables industry, valued at more than ₹1 lakh crore, counts the transmission sector among its major consumers. Some manufacturers derive as much as one-third of their total demand from this segment.
Within the industry, underground and submarine cables are emerging as important growth areas, supported by increasing requirements for modern transmission infrastructure.
The chairman said India’s transmission network was evolving beyond its traditional role of connecting electricity generation and consumption centres. It was increasingly becoming critical infrastructure determining power-sector reliability and the ability of electricity generators to supply and sell power.
“Today, if there is no transmission evacuation, we cannot sell that product,” he said, highlighting the need to synchronise transmission development with the rapid addition of renewable energy capacity.
Renewable energy expansion increases transmission requirement
Burra pointed to the scale of India’s ongoing transmission infrastructure development. During the previous financial year, the country added approximately 5,000 circuit kilometres of transmission lines and 72,000 MVA of transformation capacity.
However, the growing concentration of substations and the need to evacuate electricity generated by renewable energy projects are making transmission planning and execution increasingly complex.
He noted that renewable energy projects could be developed relatively quickly, but transmission infrastructure typically required longer execution timelines. Land availability, right-of-way restrictions and the challenges of constructing new lines alongside existing networks often delayed project completion.
Green Energy Corridor-III offers major opportunities
Burra also highlighted the Green Energy Corridor-III programme, which involves investments of approximately ₹1.86 lakh crore, as another significant opportunity for cable and wire manufacturers.
The expansion of interstate transmission networks is expected to generate demand for equipment and services across the electricity supply chain. This will also include distribution infrastructure needed to cater to the growing requirements of cities, industries and data centres.
He urged manufacturers to focus not merely on expanding production capacity but also on strengthening technological capabilities, developing comprehensive solutions and ensuring consistent product reliability.
The growing scale of India’s power infrastructure investments is expected to provide long-term growth opportunities for the domestic electrical equipment industry.
