The National Committee on Transmission (NCT) has approved around ten new transmission projects totaling more than Rs 6,600 crore. Notably, two significant projects account for a total of 5,281 crore. The NCT's approval allows these projects to submit bids.
Among the approved projects are a network expansion plan in Gujarat's Navinal (Mundra) area and an eastern region extension strategy. The former is expected to cost Rs. 2,383 crore, while the latter is expected to cost Rs. 2,898 crore. These two inter-state transmission system (ISTS) projects have been approved for implementation by the Union Power Ministry. Both projects will be subject to competitive bidding based on tariffs, with the Mundra project projected to be completed in 21 months and the eastern area extension scheme expected to be completed by June 30, 2026.
The eastern region expansion scheme includes the construction of an ISTS sub-station in Gopalpur, Odisha, to supply the power requirements of the future green hydrogen and green ammonia plants. With a total demand of around 3 GW expected by FY26, the ISTS corridor is deemed critical for supplying renewable energy to these companies and assisting them in achieving their renewable-power purchase obligations.
Aside from these, the NCT has approved projects that will connect regions in Maharashtra, Gujarat, Telangana, Madhya Pradesh, Andhra Pradesh, Odisha, and other states to the national grid.
The government expects that the approval of these projects will result in significant private investment. These programs are crucial to meeting the government's ambitious goal of 500 GW of renewable energy capacity by 2030 and efficiently integrating green power into the national grid.
The Central Electricity Authority (CEA) announced a strategy last year to integrate over 500 GW of renewable energy by 2030, predicting a demand of more than $2 trillion for the desired transmission network. Connecting high-potential solar and wind energy sites to the ISTS is critical for increasing renewable energy capacity.
In a recent Lok Sabha statement, Union Power Minister RK Singh stated that great progress has been made in improving the country's transmission network. The government has increased transmission line capacity by 1,87,849 circuit kilometers (ckm), transformation capacity by 6,82,767 MVA and inter-regional capacity by 80,590 MW. This has resulted in a unified system that operates at a single frequency and can transfer 1,16,540 MW of power across the country.
However, there has been a lag in transmission network expansion, with India only meeting 61.5% of its objective for extending power transmission lines in the first half of the current fiscal year, according to CEA data. Despite this, efforts are being made to close the gap and fulfill the growing demand for renewable energy.