Towards a Globally Competitive Indian Transmission Line Industry

From the cars on the street to the lights that light up a small town, nothing can be achieved without access to reliable, secure and sustainable energy. India’s aspirations for the future, well-being for its workers and its transition towards renewable energy rest on this very sector. That is why energy security, underpinned by robust and resilient infrastructure is at the core of India’s trajectory of becoming the third-largest economy by 2030 with a projected $7.3 trillion GDP. As per the National Infrastructure Plan, India requires ~US$193 billion in investments in the power sector alone. Historically, no country has ever achieved economic growth without adequate investments in infrastructure, making energy security within space a key component of growth. Ensuring energy security along with robust growth at affordable prices is key to achieving our aspiration of being a USD 7.3 trillion economy.

The Indian power and transmission sector has become more efficient in the past few decades, reflecting the country’s growing domestic capacity. However, significant impediments remain, preventing the Indian transmission network from reaching its full potential. Given that electricity is a regulated sector and a concurrent subject, boosting the transmission line industry is of particular significance.

This gap is further underscored by India’s electricity consumption levels, which remain below those of developed countries, signalling a need to invest heavily in electricity infrastructure if the country intends to catch up in the near future.

The National Electricity Plan and Growing Demand

The National Electricity Plan, notified in 2024, outlines the transmission system requirements for the period 2023-2032, a decade projected to shape India’s generation capacity amid growing electricity demand across emerging and conventional sectors of the economy. The plan includes the addition of a central and state transmission system to meet projected peak electricity demand of 388 gigawatts by 2032.

A key component of India’s transmission line infrastructure and its competitiveness in the sector, lies in grid modernization and deployment of smart grid technology. Advanced grid-support technologies, such as static synchronous compensators, synchronous condensers, and other flexible AC transmission systems (FACTS) devices, are being deployed to enhance voltage stability, improve system strength and support reliable integration of renewable energy. Alongside this, there is a growing need for Battery Energy Storage Systems (BESS) to manage intermittency and balance the grid.

Together, these technologies signal a shift in the sector’s priorities, from simply expanding transmission capacity to building a grid that is intelligent, flexible, and resilient enough to absorb a rapidly changing energy mix.

Cybersecurity: A Critical Need for Digital Grids

In light of the growing technological dependence, India also needs to strengthen the cybersecurity of its electricity grid. The Computer Security Incident Response Team for the Power Sector (CSIRT-Power) is responsible for coordinating the reporting of, and response to, cybersecurity incidents in the sector. Cybersecurity training programmes, workshop and capacity building initiatives are also being organized in collaboration with academic institutions and the National Critical Information Infrastructure Protection Centre.

As our grids become more digitised and interconnected, cyber resilience is no longer a peripheral concern but a core determinant of national energy security. Cyber resilience of the national grid is critical to ensure preparedness that keeps pace with the evolving cyber threat landscape.

One Nation, One Grid

India is working towards realizing the vision of “One Nation, One Grid, One Frequency,” and its growing network of transmission lines and capacity, seemingly helping it achieve this vision. Sustained government efforts to ensure reliable, affordable, and secure electricity supply across the country, while supporting rapid growth in renewable energy integration, is dependent on the way our transmission lines are structured.

In a major milestone for the nation’s clean energy transition and climate action targets, India has crossed 300 GW of non-fossil fuel-based installed electricity generation capacity as on 31st July, 2026; over 60% of the 500 GW capacity targeted to be achieved by 2030 from clean energy sources such as solar, wind, and hydropower, and measures are being taken to attain this sustainably and innovatively. Distribution company reforms are also underway to ensure financial sustainability, improve the falling plant load factor of generation plants, and carry out distressed resolution of stressed assets in the power sector.

These reforms matter because the transmission network is only as effective as the generation and distribution systems it connects. The transmission sector plays a crucial role in transmitting power from generation plants to various distribution entities spread across the country’s geography.

India’s Manufacturing and Export Capability

With an average annual growth rate of 6.5% in transmission line length over the past five years, substation capacity has witnessed even faster growth, at an annual rate of 9.6% over the same period. Over the years, India’s transmission equipment manufacturers and EPC contractors have also demonstrated technical and execution capabilities at a global level. The Make in India initiative has successfully contributed to attracting investments in the manufacturing sector, with the transmission market in India having an export share of US$ 2.6 billion in FY 2019-20.

This combination of domestic capacity growth and rising export share positions India not just as a market for transmission technology, but a credible global supplier of it.

Strategic Recommendations for Global Competitiveness

To accelerate and improve the competitiveness in the global markets, and to develop new export markets for India transmission line industries, the following strategic initiatives need to be put in place:

Conducive and Business-Friendly Government Policy

Having a stable, predictable, and long-term policy framework for private and foreign capital commitment into transmission infrastructure, such as single-window clearance for transmission projects, timely approvals, forest clearance, and policy continuity can help plan capital expenditures better and increase ease of doing business. Clear rules on tariff-based competitive bidding, dispute resolution mechanisms that match the global arena, and consistent regulatory interpretation can help shorten project gestation period, improving investor confidence in the sector.

Providing Adequate Investment for Transmission Industry

While most transmission projects in the central sector are bid through the tariff-based competitive route, there is a need for higher capital infusion to facilitate larger project volume. Encouraging private investment in the manufacturing sector, renewable energy and infrastructure can ultimately lead to quicker development of the transmission sector.

Fiscal and Tax Reforms

Boosting funding facilities, incentives, and the tax regime is equally important. This includes enhancing the buyer’s credit facility available from Exim Bank and ECGC’s NEIA, upgrading the limit for LOCs, reducing the implementation process, and introducing specific LOCs for Transmission and Distribution (T&D) projects to promote Indian exporters to participate globally. Interventions are also needed in DTA, GST, and bilateral treaties and tax moratorium. Transmission lines can also benefit from rationalized tax structure on transmission equipment, materials, and services to lower project cost and improve viability.

Proper Coordination Between Generator, DISCOMs, and Transmission/Grid Operators

Currently, the DISCOMs, generators, and transmission grid operators lack coordination. Hence, better coordination among all the stakeholders is required to help align capacity addition and demand-side absorption capacity.

Strong and comprehensive Evacuation Plan of 500 GW RE

As the government plans to achieve 500 GW of renewable energy capacity by 2030, transmission system must expand the national grid network and add major high-voltage transmission lines. This approach needs government to prioritize grid readiness, transmission expansion, and energy storage deployment as integral components. We need to hasten the process of strengthening the transmission infrastructure and grid operation, deploying small grid technologies, and expanding energy storage systems to address supply intermittency and enable round-the-clock power delivery.

Strategic Cooperation with Other Countries for Transmission Equipment and Materials

The Indian equipment manufacturer and EPC players in the transmission sectors need to improve their technical capabilities to make the products as per global standards. This also requires broad policy frameworks to create a level playing field for Indian EE players, both international and domestic. Export promotion initiatives and identification, diversification of emerging target markets and conversion of latent demand is what is needed. Cooperation with other countries for transmission equipment and materials in the form of joint research and development, existing arrangements, and diversification of import sources to reduce over-dependence on any single country can help improve supply chain resilience.

Promotion of Joint Ventures and Public Sector Investment in Transmission Industry

Joint ventures between Indian manufacturers and global technology leaders can also accelerate capability building in high-value segments in the transmission industry. Simultaneously, continued public sector investment through PGCIL, L&T transmission utilities is needed to ensure the capital intensity of the projects is met while guaranteeing national security and equitable access.

Additionally, substituting imports for critical components, providing fiscal incentives to strengthen domestic manufacturing substitutes and offering R&D incentives to improve product quality under Atmanirbhar Bharat can go a long way. The Government should also revisit existing FTAs and developing mechanisms to auto-trigger safeguard duties wherever needed.

Way Forward

India’s transmission line industry stands at an inflection point. With India’s aspiration to become a global manufacturing hub under Make in India initiative and Atmanirbhar Bharat, India has huge potential to increase its power consumption by at least 2 to 3x minimum in the next 5 to 10 years. This adds a huge playground for transmission industry that has been successfully building an extensive network of transmission lines for evacuating power produced by different electricity generating stations and distributing the same to consumers.

Transmission network is likely to expand from 5.09 lakh ckm to 6.48 lakh ckm by 2032 and transformation capacity from 1478 GVA to 2345 GVA. This growth, driven by various initiatives such as Renewable Energy Zones and National Infrastructure Plan, highlights the potential for transmission sector infrastructure to expand in line with the growing electricity demand.

The scale of investment required, the pace of grid modernization, and the country’s growing manufacturing and export credentials together suggest that India is well positioned to become not just a self-reliant energy economy, but a competitive player on a global level.