Transmission projects intended to cater to increased power demand have encountered a setback, revealed the latest data from the Union Ministry of Statistics and Programme Implementation. According to the data, updated as of April 2024, as many as 32 transmission projects entailing investments of Rs 44,254 crore are already (or likely to be) delayed.
Of the 50 large projects worth Rs 60,439 crore being implemented by the Power Grid Corporation of India Limited (PGCIL), 18 are facing an average delay of 32 months. The cumulative cost of these 18 projects stands at a whopping Rs 29,300 crore. Another eight projects bid out by PGCIL under the Tariff Based Competitive Bidding route face an average delay of 12 months. These projects have a total value of Rs 8,755 crore.
Currently, PGCIL holds over 80 per cent of the country’s transmission projects. Therefore, if PGCIL project delays and supply inefficiencies continue, the country’s power deficit may widen further by 2032. This will impact the country’s ability to meet increased power demand during prolonged heatwaves.
To develop its transmission infrastructure, including lines, substations, and reactive compensation, the country requires investments of Rs 4.75 trillion by 2027, according to the Central Electricity Authority. The authority’s plan includes 170 transmission schemes with an estimated cost of over Rs 3.13 trillion for inter-state transmission and approximately Rs 1.61 trillion for intra-state systems.
Earlier, in May this year, peak power demand recorded an increase of almost 13 per cent from a year ago and rose to 250 gigawatts (GW). In September-October, the demand is anticipated to increase to 260 GW. In this case, the quantum of the deficit will depend on the rate at which the demand grows.
Fortunately, transmission companies in several states are developing lines by awarding EPC (engineering, procurement and construction) contracts. However, central projects will remain key to India’s capacity addition, especially as the peak power demand, which has been rising by 8-9 per cent in the last three years, is estimated to increase at a compound annual growth rate of 11 per cent.
As of 30 June, India’s cumulative installed power capacity stands at 446.2 GW, including 242.9 GW of thermal and 195 GW of renewable energy.
First Published: Jul 18 2024 | 12:34 PM IST
