
India's ISTS sector to see INR1 lakh crore capex for renewables adoption
At least 65 GW of solar and wind power will be added over 2026 and 2027.
India's inter-state transmission system (ISTS) sector is expected to record capital expenditure (capex) of around INR1 lakh crore to support renewable energy evacuation.
According to Crisil Ratings, this will be over fiscal years 2026 and 2027. The amount will be twice the capex of INR50,000 crore cumulatively seen between fiscals 2024 and 2025.
Crisil Ratings expects the addition of 65 gigawatts (GW) to 75 GW of solar and wind capacities over 2026 and 2027. Timely planning and commissioning of transmission capacities remains critical as the execution period of a transmission project is typically two to four years which is twice that of a renewable energy project.
Manish Gupta, deputy chief ratings Officer at Crisil Ratings said project awarding ramped up to INR1.6 lakh crore in 2024 and 2025.
“We have seen these projects incurring an average delay of about ten months in commissioning, with few projects even seeing delays of over 18 months. Factoring these delays, we estimate transmission connectivity to be enabled for up to 60 GW of potential renewable capacity by fiscal 2027,” the expert said.