Synopsis: India’s draft National Electricity Policy sets out a huge investment plan of Rs 200 trillion by 2047 in the areas of generation, transmission, distribution, and renewables. As the sector undergoes reforms, certain power and infrastructure companies may become significant beneficiaries.
The government has released a draft National Electricity Policy. It projects that India will need nearly Rs 200 trillion in investment in the power sector by 2047, with about Rs 50 trillion required by 2032. This funding will go toward expanding generation capacity, strengthening transmission networks, and modernising distribution systems to meet growing electricity demand.
The policy highlights a major issue, which is the poor financial health of distribution companies (discoms). These companies have accumulated losses of around Rs 6.9 trillion and have a mounting debt of Rs 7.18 trillion. Tariffs often do not match actual costs, causing industrial users to pay higher rates through cross-subsidisation.
The draft suggests setting tariffs that reflect costs, issuing timely tariff orders, automatically revising tariffs if delayed, and enforcing stricter regulatory timelines to revive financial stability.
The policy also seeks to eliminate monopoly distribution models. It will allow multiple players in the same supply area, promote public-private partnerships, and even list utilities. The focus is on increasing renewable energy and raising per capita power consumption from the current 1,460 kWh to 4,000 kWh by 2047. The plan includes establishing dedicated energy funds and using risk-mitigation tools to attract long-term investment in the sector. So, which stocks should you watch? We will break this down into four stages to clarify the ecosystem.
Generation
Generation is the first step in the electricity system. Power plants make electricity using coal, gas, water, wind, or sunlight. India currently has over 500 GW of installed power capacity, and this figure needs to rise significantly as demand increases and the government aims for higher per-capita consumption by 2047. Without generation, there is no electricity to transmit or distribute. As India makes significant investments in the power sector, new power plants and capacity upgrades will be crucial.
NTPC Ltd
NTPC is India’s largest power producer, with an installed capacity of over 85 GW, with another 32.95 GW of projects under construction, which will take the total portfolio size to over 118 GW. It operates thermal, hydro, solar, and wind projects across the country. The company is also expanding into renewable energy and green hydrogen. Due to its size and government support, NTPC plays a crucial role in adding new generation capacity, making it a major beneficiary of long-term power sector investments.
Adani Power Ltd
Adani Power is among India’s largest private thermal power companies, having a current operating capacity of over 18 GW, which is spread over 13 operational power plants. The company, besides its operating portfolio, has quite a large locked-in and capacity under development pipeline (23.72 GW), which makes the total planned capacity to nearly 42 GW in the coming days. It supplies electricity to various states and industrial customers. With rising electricity demand and the need for base-load capacity, Adani Power stands to gain from higher utilisation levels and stable long-term power purchase agreements.
Transmission
Once electricity is generated, it must travel long distances to reach cities and industries. Transmission functions like the highway system for electricity, using high-voltage towers and lines to transport power efficiently across states. India has one of the largest synchronised grids globally. As renewable energy grows in remote areas, transmission networks must expand. A robust transmission infrastructure is essential to fully utilise new generation capacity.
Power Grid Corporation of India Ltd
Power Grid operates most of India’s interstate transmission network, managing over 1.83 lakh circuit kilometres of transmission (Ckm) lines and around 288 substations and inter-regional (IR) transmission capacity of nearly 101 GW. It earns regulated returns on its projects, providing stable cash flow and has orders valued at Rs 1.45 lakh crore and has also increased its capex guidance to Rs 32,000 crore from Rs 28,000 earlier, signalling strong demand. As India adds more renewable plants and enhances grid connectivity, Power Grid will remain central to transmission expansion.
Adani Energy Solutions Ltd
Adani Energy Solutions is a rapidly growing private transmission and distribution infrastructure company. The company has over 26,700 circuit kilometres of transmission network with a Power Transformation Capacity of 97,236 MVA and an under-construction orderbook worth Rs 60,004 crore. It competes for new transmission projects and also operates in the smart metering business and is expanding its national presence. As the government opens up more transmission projects to private players, the company is well-placed to benefit from new project awards.
Distribution
Distribution is the final step. Here, electricity reaches your home, office, school, or factory. Distribution companies handle local power lines, reduce technical losses, collect payments, and ensure a reliable supply. Many state-run discoms face financial stress due to high losses and poor cost recovery. The new electricity policy aims to enhance competition by allowing multiple players and encouraging private involvement.
Tata Power Company Ltd
Tata Power supplies electricity to over 13 million customers through its distribution businesses in Mumbai, Delhi, Ajmer, and Odisha. Tata Power has a total capacity of 26.34 GW, of which 16.31 GW of its capacity is operational, while the remaining 10.03 GW is under construction. It manages 4,738 Ckm of transmission lines and has another 2,573 Ckm under construction. It has successfully reduced losses and improved billing efficiency. If the distribution sector opens up more to private participation, Tata Power’s experience will give it a strong edge.
Torrent Power Ltd
Torrent Power operates private distribution networks in Gujarat, Maharashtra, and Uttar Pradesh. It is known for maintaining lower technical and commercial losses compared to many state-run utilities. The company has 355 kms 400 kV & 128 kms of 220 kV transmission lines, and another 104 kms 400 kV transmission lines under construction. Its efficient distribution operations and strong collection methods position Torrent Power well in a competitive distribution environment.
Renewable & Storage
Renewable energy includes solar and wind power. These sources are clean but not consistently available. The sun doesn’t shine at night, and wind speeds can vary. Energy storage systems, like large batteries, become important here. Storage allows electricity generated during the day to be used later. India has already surpassed 250 GW of renewable capacity, and this figure is expected to increase rapidly. As renewable energy uptake grows, storage and grid integration are vital.
Waaree Energies Ltd
Waaree Energies is India’s largest solar module manufacturer, with a multi-gigawatt manufacturing capacity. It produces solar panels that convert sunlight into electricity. The company has a robust solar module capacity of nearly 23 GW along with a 5.4 GW of cell capacity, a robust order book of Rs 60,000 crore and a strong capex plan worth Rs 25,000 crore. As India continues to expand solar capacity under long-term energy plans, demand for domestic solar modules is likely to stay strong.
Hitachi Energy India Ltd
Hitachi Energy supplies high-voltage equipment, substations, grid automation, and power electronics systems. These technologies are crucial for safely and efficiently integrating renewable energy and battery storage into the grid. As renewable projects expand, advanced grid solutions will become increasingly essential.
JSW Energy Ltd
JSW Energy is aggressively transitioning toward renewables and utility-scale battery storage projects (BESS). The company plans to build up to 30 GW of capacity and 40 GWh of energy storage by 2030, with a cumulative capital expenditure of Rs 1.3 lakh crore. Earlier, it secured BESS projects through its step-down subsidiary JSW Renew Energy. The company’s hybrid renewable-plus-storage strategy directly supports India’s long-term clean energy goals.
In summary, the draft National Electricity Policy indicates the commencement of a structural investment cycle of a long-term nature, with almost Rs 200 trillion envisaged to be invested in India’s power sector till 2047.
Among generation, transmission, distribution, and renewable integration sectors, there is an opportunity for well-capitalised and execution, focused companies to benefit from capacity additions and infrastructure upgrades. However, the scale of investment is significant, and the sustainable creation of value will depend on efficient execution, regulatory stability, and the capability of companies to turn expansion into regular cash flows and profits.
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