State-run Power Grid Corporation of India Limited (PGCIL) has revised its capital expenditure target for the current financial year to ₹23,000 crore, a significant increase from the previously set ₹18,000 crore. The move comes amid rising electricity demand and the company’s growing portfolio of transmission projects.

PGCIL currently has transmission projects worth ₹1,47,000 crore in progress. The company has also outlined its future capital expenditure plans, projecting ₹28,000-30,000 crore for FY26 and ₹35,000 crore for FY27, indicating a continued focus on expanding India’s power transmission infrastructure.

Breakdown of Capex Allocation

The company is investing heavily in projects awarded through different bidding mechanisms. Of the ₹23,000 crore allocated for FY25:

• ₹14,209 crore is being spent on projects secured through tariff-based competitive bidding (TBCB)
• ₹3,914 crore is allocated to projects under the Regulated Tariff Mechanism (RTM)

Previously, PGCIL had planned a capital expenditure of ₹20,000 crore each for FY26 and FY27, but the company has now increased its investment by nearly ₹10,000 crore, highlighting the scale of infrastructure development required to meet growing electricity needs.

Key Transmission Projects

PGCIL is actively involved in both interstate and intrastate transmission projects, ensuring efficient power evacuation for India’s growing renewable energy sector. Among its major projects, the company is executing two high-voltage direct current (HVDC) transmission lines:

• Khavda to Nagpur HVDC Line – ₹35,000 crore project
• Pang to Leh HVDC Line – ₹20,000 crore project

Both projects are expected to be completed over the next five years.

HVDC technology allows precise control over power flow, making it a preferred choice for managing India’s transmission network, especially with the increased integration of renewable energy sources. The government is encouraging HVDC deployment due to its ability to stabilise grids and efficiently transmit power over long distances.

PGCIL’s Strategic Expansion

PGCIL’s increased capital expenditure aligns with India’s push for strengthening power transmission infrastructure and supporting the nation’s renewable energy transition. The company continues to execute large-scale projects that will enhance grid stability and ensure seamless power distribution across the country.

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