India Needs Investments worth Rs 5 Lakh Crores in Power Transmission: CII

PM Narendra Modi’s idea of a 5 trillion-dollar economy will necessitate a projected investment of Rs 5 lakh crore in the transmission sector over the next few years, industry body Confederation of India Industry said in an announcement.

India will be consuming 1.8 trillion units by 2025 as India’s growth trajectory accelerates, and this requires large investments in the transmission sector, particularly at the state level.

“The transmission sector has seen a fall in the investments to below 1.8 lakh crore in the last five years but this will need to see a significant jump as 500 GW of renewable energy is added to the grid by 2030,” CII believed.

The boardroom has worked on a white paper “New Age Power Systems: For 21st Century India Challenges, Solutions and Opportunities” with a view to partner with the government in developing a blueprint for efficient transmission system. The 8-point agenda drawn up for a robust transmission system includes recommendations on planning, operations and costs.

The report pursues to draw up a blue print for the country’s vision on power for all and electric mobility, a stated goal of the centre.

“There is a need to recalibrate our power systems in line with the changing energy scenario. With more than 90 per cent of the capacity addition in the renewable sector, there is a need to make transmission grids more suited to handle the intermittent power while adhering to the challenges of urbanization and paucity of land,” said Rajiv Ranjan Mishra, Co-Chairman of CII National Committee of Power and Managing Director of CLP India.

CII has suggested upgrading capacities within existing infrastructure, clearly distinguishing the role of the central transmission utility from the functions of the developer, redefining the scope of planning for the centre which should be based on the capacity of the transmission line instead of the geography where the same is located, and finally the need to bring in competition and move away from the cost-plus approach or regulated tariff mechanisms.