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POLICY AND ECONOMIC REPORT
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4. UHV AC Transmission System to Reshape India's Grid by 2034

Shri Manohar Lal said that India is set to revolutionize its power transmission with the rollout of an Ultra
High Voltage Alternating Current (UHV AC) Transmission System.

Nine 1100 kV lines and ten substations have been identified for development by 2034, with testing
facilities under development by the Central Power Research Institute. Investment would be Rs 53,000 Cr

5. Compensation for Power Transmission Lines Increased

Shri Manohar Lal said that in a landmark move, the central government has increased the compensation
for land used in laying transmission lines to ease the Right of Way issues.

Compensation for the tower area has jumped from 85% to 200% of the land value, and for the Right of
Way (RoW) corridor from 15% to 30%, directly linking land value to market rates. Haryana and Delhi have
already adopted the new guidelines issued on March 21, 2025.

6. More Private Investments in State Transmission Grids

In a move set to attract more private investment and ensure financial discipline, the Late Payment
Surcharge (LPS) Rules have been expanded to include Intra-State Transmission Systems. This crucial
reform, previously applied only to Inter-State Transmission Systems, aims to expand the Intra-State
Transmission networks to absorb Renewable Electricity.

7. India Adds Historic 34 GW Generation Capacity in FY25, Led by Renewables

Shri Manohar Lal also stated that in an unprecedented feat, India added its highest-ever generation
capacity of 34 GW during 2024-25, with renewable energy accounting for 29.5 GW. The nation's total
installed capacity now stands at 472.5 GW, up from 249 GW in 2014.

8. 250 MW Tehri Pumped Storage Project (PSP) Commissioned

Adding flexibility to the grid, 250 MW first unit of Tehri Pumped Storage Project (PSP) in Uttarakhand has
been commissioned. This project will help in managing peak demand and integrating renewable energy.

9. Energy Shortages Plummet to Record Low of 0.1% Nationally

A testament to significant additions in generation and transmission capacities, India's national energy
shortage has drastically reduced to a mere 0.1% as of April 2025. This marks a monumental improvement
from the 4.2% shortage experienced in 2013-14, ensuring greater power availability for all.

Ministry of Power conceives an 'India Energy Stack' to build the Digital Backbone for India's Power
Sector

The Ministry of Power has announced the launch of a task force to conceive the India Energy Stack (IES),
a pioneering initiative aimed at creating a unified, secure, and interoperable digital infrastructure for
India's energy sector.

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