Page 53 - Policy Economic Report_Jan 25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

of Enabling Infrastructure for HEPs”. Total outlay of the scheme is ?12461 crores for the period
from FY 2024-25 to FY 2031-32. A cumulative hydro capacity of approximately 31 GW, including
15 GW of PSP capacity, would be supported under the scheme.
o Pump Storage Projects (PSP): India has the potential of PSPs of about 181 GW with around 5 GW
(2.6%) developed so far. Government has set an ambitious target of adding 35 GW PSP capacity
by 2031-32 out of which, 6 GW is under construction and rest is under development stage.
o Battery Energy Storage System (BESS): Under the Viability Gap Funding (VGF) Scheme for
development of BESS, a capacity of 13,000 MWh is targeted for addition.

Transmission

o National Electricity Plan: Govt. of India has finalised National Electricity Plan from 2023 to 2032
for Central and State transmission systems to meet a peak demand of 458 GW by 2032. The total
cost of the plan is Rs 9.15 lakh Cr. Under the previous plan 2017-22, about 17,700 circuit
kilometers (ckm) lines and 73 GVA transformation capacity were added annually. Under the new
plan, transmission network in the country will be expanded from 4.91 lakh ckm in 2024 to 6.48
lakh ckm in 2032. During the same period the transformation capacity will increase from 1,290
Giga Volt Ampere (GVA) to 2,342 GVA. Nine High Voltage Direct Current (HVDC) lines of 33.25
GW capacity will be added in addition to 33.5 GW presently operating. Inter-Regional transfer
capacity will increase from 119 GW to 168 GW. This plan covers the network of 220 kV and above.
This plan will help in meeting the increasing electricity demand, facilitate RE integration and green
hydrogen loads into the grid.

o 50 GW ISTS Capacity Approved: 50.9 Giga Watt of Inter State Transmission Projects costing Rs.
60,676 Cr has been approved. The transmission network required to connect 280 GW of Variable
Renewable Energy (VRE) to the Inter-State Transmission System (ISTS) by 2030 is planned to be
335 GW. Out of this, 42 GW has already been completed, 85 GW is under construction, and 75
GW is under bidding. Balance 82 GW will be approved in due course.

o Improvement in Transmission System: During 2024, 10,273 ckm of transmission lines (of 220 kV
& above), 71,197 MVA of transformation capacity (of 220 kV & above) and 2200 MW of Inter-
regional Transfer Capacity have been added.

o Right of Way (RoW) compensation Guidelines: To ensure the timely development of power
transmission infrastructure for evacuating 500 GW of renewable energy by 2030, the Ministry of
Power revised the Right of Way (RoW) guidelines in June, 2024, linking compensation to the
market value of land. For tower base area, the compensation has been increased from 85% to
200% of the land value. For the RoW Corridor, compensation has been raised from 15% to 30%
of the land value.

Distribution

o Revamped Distribution Sector Scheme (RDSS): Under RDSS which aimed at improving operational
efficiencies and financial sustainability of Discoms, 19,79,24,902 prepaid Smart meters, 52,52,692
DT meters and 2,10,704 Feeder meter have been sanctioned at a cost of INR 1,30,670.88 Cr. Loss
Reduction works of ~INR 1.46 lakh Cr. have been sanctioned and Rs 18,379.24 Cr have been

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