Significant downward revision in FY26 targets for transmission infrastructure capacity addition
- August 22, 2025
There has been significant downward revision in the targets for transmission line and substation capacity addition during FY26.
Central Electricity Authority (CEA) has revised the transmission line addition target for FY26 by 37 per cent to 15,382 ckm from the originally planned 24,400 ckm. Similarly, the target for substation (transformation) capacity addition in FY26 stands 36 per cent lower from 1,97,617 MVA to 1,26,007 MVA.
These revisions have been the result of a series of meeting held in July 2025 between Power Grid Corporation of India Ltd (PGCIL), state utilities and private transmission service providers with CEA. Based on the status report provided, these transmission utilities requested CEA for a revision in the planned capacity addition targets for FY26, it is learnt.
Much of the revision has come about in the planned addition by Central government agencies. This ownership group now expects to commission 5,385 ckm of transmission lines in FY26, which is nearly half of the 10,349 ckm earlier planned. It may be mentioned that PGCIL accounts for almost the entire addition by Central government agencies, with Damodar Valley Corporation (DVC), the only other player, having marginal contribution.
Private sector entities that are mainly involved with interstate transmission system (ISTS) schemes awarded under the TBCB route have also seen a sharp reduction in planned addition. From 6,404 ckm envisaged earlier, private entities are now expecting to add just 3,217 ckm of transmission lines – a drop of 50 per cent. In terms of substation capacity, the private sector expects to commission 20,505 MVA in FY26 – 42 per cent lower than the 35,505 MVA originally planned.
State transmission utilities are relatively better placed, anticipating only around 11 per cent under-achievement from their original FY26 targets.
The downward revision with respect to Central and private utilities has had an adverse bearing on 765kV power transmission infrastructure, as these two ownership groups are most actively involved in this voltage class. It is now expected that India will see the commissioning of 7,018 ckm of 765kV lines, as against 12,865 ckm earlier planned – a decline of 45.4 per cent. The fall in terms of 765kV substation capacity is equally stark at 43 per cent, from 1,03,000 MVA originally envisaged to 59,000 MVA now.
Comparison with FY25
Despite the downward revision in targets, the projected performance in FY26 will still be better than in FY25. In the case of transmission lines, the year-on-year growth in FY26 is expected to be 74 per cent, and that for transformation capacity, 46 per cent. However, this is presuming that there are no further revisions in FY26 targets.
However, the projected year-on-year growth of 74 per cent in FY26 transmission line addition must be seen against the fact that in FY25 only 8,830 ckm was achieved, making it the lowest achievement since FY15. This unusually low base will could apparently “inflate” the relative achievement of FY26, even if it falls short of the planned addition.
RoW concerns
It is an accepted fact that right-of-way (RoW) challenges have seriously impinged upon the progress of transmission lines, particularly on the interstate transmission system (ISTS) network. The main concern has been inadequate financial compensation to landowners, in relation to market rates. To address this concern, significant upward revisions were effected in land compensation rates in June 2024 and this is expected to augur well for lines currently under construction, and those planned.
It may be mentioned that PGCIL was quite severely impacted by RoW-related challenges. The Central PSU could achieve commissioning of Rs.9,014 crore worth of projects in FY25 – a quantum that fell short of the planned Rs.18,000 crore. On its part, PGCIL has initiated a series of measures to overcome RoW-related concerns, as outlined in T&D India’s story dated August 4, 2025, and the Central PSU has seen some improvement in the situation with respect to states like Maharashtra, Gujarat and Rajasthan.
Also read: Significant ISTS network upgrade envisaged in FY25
(Important note: This story deals with transmission lines and substations of 220kV or higher only)