Land, RoW-related issues continue to impact power transmission project execution: ICRA
Rating agency ICRA in its latest report has said that power transmission projects continue to grapple with execution challenges due to delays in land acquisition, right of way (RoW)- related issues, and regulatory approvals. Further, it said these bottlenecks translate into grid curtailment related issues for the renewable energy (RE) developers, thereby impacting their returns.
Despite these challenges, ICRA expects a significant uptick in capacity addition in the power transmission sector as the country gears up to integrate the upcoming RE capacity in the grid. It estimates capital expenditure in the power transmission sector at Rs 5-6 lakh crore between FY27 and FY32.
The report further noted that outstanding orders and order inflows for key equipment suppliers to the transmission sector in FY26 have also more than doubled compared with FY22. A surge in transmission capex over the coming years is expected to lead to healthy order inflows for these players. However, supply-side constraints stem from limited capacity of equipment manufacturers and skilled manpower, constraining execution timelines, which could cause delays in transmission capacity additions unless these players scale up their capacities. Moreover, such a significant scale-up in capacity addition requires the need to address execution-related challenges, which the sector is facing.
