Swastika Infra

India’s electricity demand is expanding steadily due to economic growth, rising household consumption, industrial activity and increasing electrification across transport and other end-use segments. Higher peak-load requirements are placing additional pressure on existing distribution infrastructure, requiring utilities to strengthen substations, feeders, transformers and last-mile networks. This creates sustained opportunities for power EPC contractors involved in network expansion, capacity augmentation and system upgrades. Continued electrification and rising per-capita consumption should support recurring investments in transmission and distribution infrastructure over the medium term.

The key points are

• India generated approximately 1,958.2 TWh of electricity in 2023, reflecting continued growth in overall power consumption

• Peak power demand reached approximately 246.0 GW in May 2024, indicating increasing pressure on transmission and distribution infrastructure

• Expanding residential, commercial and industrial electricity usage is driving requirements for new substations, feeders and distribution networks

India’s ageing and increasingly complex electricity network requires significant modernisation to support higher demand, renewable-energy integration and improved reliability. Government utilities are investing in substations, underground cabling, feeder segregation, smart metering and network-strengthening projects to reduce technical losses and improve power quality. These initiatives directly support demand for EPC contractors with capabilities across electrical installation, testing and commissioning. Large planned additions to substation and distribution capacity provide a multi-year project pipeline for companies participating in utility-led infrastructure expansion.

The key points are

• The CEA Distribution Perspective Plan estimates peak electricity demand of approximately 334.8 GW by FY30

• The plan envisages around 12,192 additional substations and approximately 141,522 MVA of incremental capacity

• Investments in underground cabling, feeder segregation, loss reduction and network strengthening are increasing EPC opportunities across states

Rapid urbanisation, housing development and industrial expansion are creating new centres of electricity demand across India. New manufacturing clusters, industrial corridors, residential developments and urban infrastructure projects require reliable distribution networks, substations and supporting electrical infrastructure. Government-led programmes are further accelerating development of new industrial cities and housing projects, increasing local power-load requirements. As economic activity spreads beyond established metropolitan centres, utilities are required to expand and reinforce distribution systems, creating additional opportunities for EPC contractors serving both urban and industrial infrastructure projects.

The key points are:

• Housing expansion and PMAY-led development increase electricity connections and associated local distribution-infrastructure requirements

• The National Industrial Corridor Development Programme approved 12 new industrial cities with investment of approximately INR 28,602.0 Cr

• New manufacturing clusters and industrial corridors require dedicated substations, feeders, cabling and power-distribution capacity, supporting incremental EPC demand

Power EPC is structurally attractive but execution-intensive. Contractors depend on tender awards, utility budgets, right-of-way and statutory approvals, timely delivery of transformers and cables, and certification of project milestones. State-owned DISCOMs remain the dominant customers in distribution and continue to face financial stress, which can translate into delayed payments and slower project decisions. Fixed-price or competitively bid contracts can also expose EPC companies to input-cost inflation, performance guarantees, liquidated damages and margin pressure when project timelines extend unexpectedly.

The key points are:

• DISCOM financial health: State-owned DISCOMs serve about 90.0% of Indian consumers and account for roughly 80.0% of electricity supply. Irregular tariff revisions, subsidy delays and high losses can weaken their cash flows and extend contractor receivable cycles

• Project delays and approvals: Mordor notes material delays in large power projects due to approvals, development timelines and site constraints. Delays can increase labour, financing and overhead costs and may trigger penalties where contractual relief is unavailable

• Supply-chain and competitive bidding: Transformers, cables and other electrical equipment can experience price and availability volatility. Competitive utility tenders can restrict the ability to pass through cost increases, particularly where contracts are fixed-price or escalation clauses are limited

Government programmes are a central demand engine for power EPC. The policy framework is focused on strengthening DISCOM infrastructure, reducing technical and commercial losses, improving supply reliability, expanding inter-regional transmission and integrating renewable generation. This results in recurring tender opportunities for substations, HT/LT lines, underground cabling, feeder segregation, smart metering and grid evacuation. For contractors such as Swastika, the opportunity is strongest where pre-qualification credentials, bank guarantees and multi-state execution capability align with large utility procurement programmes.

The key policies are:

• RDSS: The Revamped Distribution Sector Scheme carries an outlay of approximately INR 303,758.0 Cr. As of August 2024, distribution-strengthening projects aggregating about INR 185,000.0 Cr had been rolled out across states for substations, HT/LT lines, feeder segregation, AB cables and underground cabling

• National Electricity Plan - Transmission: Planned transmission expenditure is approximately INR 912,000.0 Cr through 2031-32, with 191,474 ckm of additional transmission lines and 1,274 GVA of transformation capacity envisaged at 220 kV and above

• Renewable integration and smart infrastructure: The Green Energy Corridor, National Smart Grid Mission and related renewable / urban programmes require evacuation, grid reinforcement, smart metering and distribution upgrades, broadening the addressable EPC opportunity beyond conventional electrification projects