Summary:

India is urging states to raise private financing to enhance their electricity transmission networks. The goal is to modernize the system to accommodate more sustainable energy. States are encouraged to monetize their transmission assets by transferring ownership for a specified period and reinvesting the proceeds in new projects. Regulators are advised to create pricing structures that ensure reliable revenue streams for investors.

India plans to invest Rs 9,15,920 crore (US$ 107 billion) by 2032 to develop its transmission network and triple sustainable energy capacity. A third of the investment will be directed towards regional networks, largely operated by government agencies. The government aims to stimulate private investment by monetizing brownfield assets. The strategy emphasizes the importance of consistent cash flows, payment security, and a strong pipeline for privatization. The revised transmission tariff structure is designed to attract private investment.

Source: IBEF

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