India Unveils $109.50 Billion Plan to Transform Power Infrastructure and Energy Security
Team Finance Saathi
26/Sep/2024

What's Covered
Union Minister Manohar Lal announces a $109.50 billion investment in India's power infrastructure under the National Electricity Plan 2023-2032.
The plan aims to expand the transmission network to accommodate a projected peak demand of 458 GW by 2032, integrating renewable energy sources.
New guidelines for electric vehicle charging infrastructure promote nationwide adoption, while a Cyber Security Incident Response Team is introduced to protect the sector.
In a significant move to enhance India’s power infrastructure, the Ministry of Power, guided by Prime Minister Mr. Narendra Modi, has unveiled a US$ 109.50 billion (Rs. 9.15 lakh crore) plan aimed at strengthening the nation's power grid and improving energy security. During a recent press conference, Union Minister of Power, Mr. Manohar Lal, announced the National Electricity Plan 2023 to 2032, designed to expand the transmission network to accommodate a projected peak demand of 458 GW by 2032.
Emphasizing Infrastructure Importance
“Our power infrastructure is pivotal to national security and economic stability,” stated Minister Lal, highlighting the critical need for integrating renewable energy and green hydrogen into the existing grid. The ambitious transmission network expansion will see growth from 4.85 lakh circuit kilometers (ckm) in 2024 to 6.48 lakh ckm by 2032. Additionally, the transformation capacity is set to increase from 1,251 GVA to 2,342 GVA, ensuring a robust and responsive power supply framework.
Investment in Renewable Energy
The Minister also approved 50 GW of Inter-State Transmission System (ISTS) capacity aimed at evacuating 280 GW of variable renewable energy (VRE) by 2030, with 42 GW already completed. In the recent 100-day period, transmission schemes for 50.9 GW capacity were approved, representing an investment of US$ 7.26 billion (Rs. 60,676 crore). These initiatives will significantly enhance renewable electricity evacuation across key states, including Gujarat, Andhra Pradesh, and Rajasthan.
Electrification of Vulnerable Communities
Moreover, progress has been made in empowering marginalized communities, with 83,596 households from Particularly Vulnerable Tribal Groups (PVTG) being electrified. The initiative also includes significant advancements in segregating agricultural feeders to enhance service delivery to rural areas.
Cyber Security and EV Infrastructure
The conference introduced the Computer Security Incident Response Team for the power sector (CSIRT-Power), a vital step towards safeguarding critical infrastructure from cyber threats. This initiative reflects the government's commitment to ensuring the security and reliability of the power supply amidst increasing digital threats.
In line with promoting sustainable transportation, revised electric vehicle (EV) charging infrastructure guidelines were announced to support a nationwide interoperable network, thereby encouraging electric vehicle adoption across the country.
Conclusion
With this comprehensive plan, the Indian government aims to not only meet the increasing energy demands of the future but also enhance the sustainability and resilience of its power infrastructure. The National Electricity Plan 2023-2032 marks a pivotal step towards achieving energy security, promoting renewable energy integration, and ensuring that India remains on track for sustainable economic growth in the coming decades.
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