Power Grid plans bigger capex and urges cable makers to expand output

what happened

India's state-owned Power Grid Corporation, according to Moody's, expects capital spending this fiscal year to top the Rs.40,000 crore it invested last year. The company had earlier forecast Rs.37,000 crore in May, but Chairman Vamsi Rama Mohan Burra suggested the guidance could be raised. The spending reflects rising electricity use, renewable capacity growth, urbanisation and demand from data centres.

Burra urged domestic wire and cable manufacturers to add capacity, improve quality and deliver orders on time. He said the country added about 5,000 circuit kilometres of transmission lines and 72,000 MVA of transformer capacity last year. He also pointed to the Green Energy Corridor-III programme, worth roughly Rs.1.86 lakh crore. Land availability, right-of-way limits and building next to existing networks often slow projects.

why it matters

For markets, this points to a multi-year grid build-out in India. Transmission can account for up to a third of some cable makers' demand, so order books may grow, though construction timelines could slow delivery.

market impact

Indian cable and wire makers: expected rise in transmission orders supports the sector

• ▲Indian cable and wire makers pressure up — larger Power Grid capex should lift their order books

tags

instruments