Government Greenlights ₹38,849 Crore Projects to Strengthen Renewable Power Evacuation in 2025

The power sector recorded steady progress in 2025 as the government advanced investments across transmission, distribution and generation to meet rising electricity demand and support large-scale renewable energy integration. 

Renewable Transmission Capacity Push 

Between January and November 2025, transmission projects worth ₹38,849 crore were approved to evacuate electricity from renewable energy projects. India’s future grid planning requires 335 GW of transmission capacity to connect 280 GW of renewable energy.  

Of this requirement, 48 GW has been completed, 172 GW is under construction and 18.5 GW is currently under bidding, reflecting sustained momentum in grid development. 

Distribution Reforms and Sector Finances 

Under the Revamped Distribution Sector Scheme, 1,979 lakh prepaid smart meters and 2.05 lakh feeder meters were sanctioned at a total cost of ₹1,30,671 crore to improve operational efficiency of discoms.  

Since the introduction of late payment surcharge rules in 2022, legacy dues have declined from ₹1,39,947 crore to ₹8,005 crore, with 13 states clearing payments worth ₹1,31,942 crore. Per capita electricity consumption rose 53%, increasing from 957 units in 2013–14 to 1,460 units in 2024–25. 

Power Generation Capacity Additions 

During 2025–26 so far, 13 GW of new coal-based capacity has been awarded and 7.21 GW commissioned, taking total coal and lignite capacity to 226.23 GW. A further 40 GW is under construction, while 24.02 GW is in various stages of planning and bidding.  

Progress was also reported on the 700 MW Tato-II hydropower project in Arunachal Pradesh, scheduled for completion in 72 months at a cost of ₹8,146 crore. 

Read More: India’s Growth to Hold at 7% in FY27 Despite External Headwinds: CareEdge Ratings! 

Conclusion 

With major transmission approvals, improved discom finances and balanced capacity additions across power sources, 2025 strengthened the foundations of India’s power sector and supported the next phase of renewable energy growth. 

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