Green Energy Corridor Phase-III: List of Stocks That Could Ride India’s ₹1.86 Lakh Crore Power Capex Wave
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the Green Energy Corridor Phase-III (GEC-III) scheme in order to enhance the transmission infrastructure in India. This scheme aims to evacuate up to 135 GW of renewable energy capacity in States/Union Territories.
₹1.86 Lakh Crore Project Outlay
The project will require a total project cost of Rs. 1,86,405 crore and will be completed by FY 2032-33. Out of this amount, Rs. 1,36,378 crore will be spent on Intra-State Transmission System (InSTS), while Rs. 50,000 crore will be invested in establishing 50 GWh of BESS. Central Financial Support of Rs. 54,082 crore will be provided by the Government.
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50 GWh Battery Storage Deployment
Deployment of 50 GWh of BESS at renewable energy developer or generator sites as well as other critical spots within the grid will be enabled by GEC-III. This is anticipated to assist in addressing issues relating to renewable energy intermittency, transmission congestion, peak-hour curtailment, and electrical demands in non-solar hours.
This program would enhance the transmission system within the states for better integration and evacuation of renewable energy. The central financial assistance would offset any transmission cost at the state level. This should ensure that the power costs remain low and benefit the electricity consumers.
Implementation Through Competitive Bidding
With respect to the InSTS program element, all new developments shall be carried out using the tariff-based competitive bidding system (TBCB) approach, while network upgradation and strengthening initiatives shall be carried out on the cost-plus basis. The State Transmission Utilities will act as the implementing agency for all such activities, along with the transmission service providers.
Supporting India’s 900 GW Non-Fossil Target
GEC-III is expected to support India’s target of achieving 900 GW of installed non-fossil fuel capacity by 2035 by creating transmission infrastructure needed for large-scale renewable energy integration. The expanded network can also strengthen long-term energy security and support the country’s transition towards cleaner electricity.
This project will lead to the creation of jobs in the power, manufacturing, and construction industries both directly and indirectly. Further, the use and manufacture of the BESS will help in creating India’s indigenous energy storage technology, along with providing job opportunities for operations, maintenance, and grid management in the future.
Here’s a list of stocks that could benefit from this:
Nomura expects GEC-III to significantly accelerate transmission capital expenditure, with the latest phase involving a much larger outlay than earlier phases. This increase is likely to drive higher spending on transmission lines, substations and grid infrastructure.
The brokerage believes the capex push could create stronger business opportunities for transmission equipment manufactur ers. It specifically identifies these key stocks as major potential beneficiaries of the expected increase in transmission investments.
GE Vernova T&D India: Could benefit from higher transmission capex under GEC-III, with increased spending on transmission lines, substations, and grid infrastructure creating opportunities for its power transmission equipment and solutions.
Hitachi Energy India: From rising investments in grid expansion and renewable power integration, particularly as states strengthen transmission networks and deploy advanced high-voltage equipment to handle increasing renewable electricity flows.
CG Power: Expected to benefit from rising transmission and grid-strengthening expenditure, as higher infrastructure investments may support demand for electrical equipment and create additional opportunities across its power systems business.
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Along with this, these stocks are also likely to benefit from the Power Capex Wave
Power Grid Corporation: Could benefit from the broader expansion of transmission infrastructure and rising renewable power evacuation requirements.
Kalpataru Projects International: Its transmission and distribution business could gain from increased spending on intra-state power networks and grid strengthening.
Techno Electric & Engineering: The company’s transmission and power infrastructure exposure could provide opportunities as states expand networks to integrate renewable capacity.
Transformers & Rectifiers (India): The Rising investment in transmission infrastructure could support demand for transformers and other electrical equipment used in grid expansion and upgrades.