EPTA flags untapped FDI potential in power transmission, urges government action

The Electricity Power Transmission Association (EPTA) has written to the Ministry of Power and the Ministry of Finance’s Department of Economic Affairs, urging policy measures to attract long-term foreign investment into India’s power transmission sector amid macroeconomic uncertainty and rising infrastructure requirements.

In its representation, EPTA noted that volatile crude oil prices and geopolitical uncertainty have heightened the importance of attracting stable, non-debt foreign capital to support India’s investment needs.

The association highlighted the sector’s potential to attract greenfield Foreign Direct Investment (FDI), with 100% FDI permitted under the automatic route and investment requirements estimated at ₹9.15 lakh crore through 2032.

The concern comes amid Power Grid Corporation of India Ltd (PGCIL) significant share of recent project awards. According to industry analysis published by T&D India on October 8, 2026, PGCIL accounted for 62 per cent of the aggregate transmission tariff value of ISTS projects awarded under the Tariff Based Competitive Bidding (TBCB) route in H1 FY2026–27, winning 10 projects.

This figure relates to recent awards under TBCB and not the entire operational transmission asset base. PGCIL operates 1.87 lakh circuit kilometers (ckm) of transmission lines, representing approximately 86% of India’s total operational ISTS network of 2.16 lakh ckm.

To address these concerns, the Industry has proposed capping any single economic group’s share at 40% of aggregate ISTS project capital expenditure awarded over a rolling three-year period. It has also recommended that all eligible high-value ISTS projects be awarded through the TBCB mechanism.

Tariff Based Competitive Bidding or TBCB was introduced in 2006 to promote competition and broaden private sector participation in transmission infrastructure. EPTA’s representation highlights the need to ensure that this established investment route continues to attract fresh private and foreign capital.

With India’s transmission investment requirements expanding alongside renewable energy capacity, grid connectivity and renewable energy evacuation will require substantial capital deployment.

Despite a liberal FDI regime and a significant project pipeline, converting investor interest into actual capital commitments will depend on commercially viable projects, predictable bidding conditions and an investment framework that adequately accounts for execution and financing risks. EPTA’s recommendations seek to address these concerns and strengthen the sector’s ability to attract long-term global capital.