Power Sector PSUs Set to Scale Up Investments, Signalling Strong Momentum in India’s Energy Infrastructure – EQ
In Short : Investments by power sector public sector undertakings are projected to rise nearly 19 percent to ₹1.01 lakh crore in FY27, reflecting strong momentum in India’s energy infrastructure expansion. The increased capital outlay highlights the government’s focus on strengthening generation, transmission, and distribution systems while supporting renewable integration, grid modernisation, and long-term energy security.
In Detail : Power sector public sector undertakings are expected to significantly increase their investments in FY27, with total capital expenditure projected to reach ₹1.01 lakh crore. This nearly 19 percent rise indicates renewed confidence in India’s power sector and underlines the strategic importance of energy infrastructure in sustaining economic growth.
The increased investment reflects the government’s broader vision of building a robust, reliable, and future-ready power ecosystem. As electricity demand continues to rise due to industrial expansion, urbanisation, and digitalisation, strengthening power infrastructure has become a national priority.
A major portion of the planned investment is expected to flow into generation capacity, including both conventional and renewable sources. While thermal power remains essential for base load stability, there is a strong parallel push toward expanding solar, wind, and hybrid energy projects to support India’s clean energy targets.
Transmission infrastructure is also likely to receive substantial funding, particularly for strengthening interstate and interregional connectivity. Modern transmission networks are critical for integrating renewable energy, reducing losses, and ensuring reliable power supply across diverse geographic regions.
Distribution reforms are another key area of focus, with investments aimed at improving operational efficiency, reducing technical and commercial losses, and enhancing service quality. Upgrading distribution systems is essential for financial sustainability of utilities and for delivering reliable power to consumers.
The rise in PSU investments also supports India’s long-term energy transition agenda. Large-scale capital deployment enables faster adoption of smart grids, energy storage systems, and digital monitoring technologies, which are necessary for managing complex and decentralised energy systems.
From an economic perspective, higher investment by power PSUs is expected to generate strong multiplier effects. It stimulates demand for equipment, engineering services, construction, and skilled labour, thereby contributing to job creation and industrial growth.
These investments also strengthen India’s energy security by reducing supply vulnerabilities and improving system resilience. A well-funded power sector ensures that future demand shocks, climate risks, and geopolitical uncertainties can be managed more effectively.
Overall, the projected rise in power sector PSU investments in FY27 reflects a strategic commitment to building a modern energy foundation. It signals a shift toward long-term infrastructure planning that supports sustainable growth, clean energy integration, and a more reliable power system for the country.
