Budget proposes major hike in power sector investment
The government has proposed nearly a 19 per cent increase in investment by nine state-owned power sector firms in 2026-27, taking the total to over Rs 1 lakh crore. Major PSUs like NTPC and Power Grid will lead the expansion
New Delhi: The government has proposed to increase total investment by nine state-owned power sector firms by nearly 19 per cent to Rs 1,01,762.92 crore in 2026-27 compared to the previous fiscal year.
According to the Budget document, the Revised Estimate (RE) of investment by these nine firms is pegged at Rs 85,828.93 crore for 2025-26, while the budgeted estimate (BE) was Rs 86,138.48 crore.
State-owned power giant NTPC’s investment will be hiked to Rs 31,000 crore in the next fiscal year from an RE of Rs 29,000 crore and a BE of Rs 26,000 crore in 2025-26.
Similarly, the investment by Power Grid Corp will be raised to Rs 37,000 crore in the next fiscal year from an RE of Rs 28,000 crore and a BE of Rs 25,000 crore.
The investment by SJVN Ltd will be Rs 9,416 crore in FY27, as against an RE of Rs 7,500 crore and a BE of Rs 12,000 crore in FY26. The investment by NHPC will also go up to Rs 14,323.49 crore in the next fiscal year from an RE of Rs 12,478.32 crore and a BE of Rs 13,000 crore.
The investment by Damodar Valley Corporation Ltd will be Rs 5,553 crore in FY27, up from an RE of Rs 3,394 crore and a BE of Rs 3,394.83 crore for FY26.
North Eastern Electric Power Corporation Ltd will invest Rs 1,959.37 crore in the next fiscal year, as against an RE of Rs 1,500 crore and a BE of Rs 2,600 crore.
However, the investment by Tehri Hydro Development Corporation Ltd has been reduced to Rs 2,385.05 crore for 2026-27 from an RE of Rs 3,543 crore. Its investment as per the BE was Rs 3,543.65 crore.
Chenab Valley Power Projects’ investment for the next fiscal year was also reduced to Rs 1 lakh from the RE of Rs 303.61 crore and BE of Rs 300 crore in 2025-26.
Power System Operation Corporation Ltd investment will be Rs 126 crore in the next fiscal year, as against an RE of Rs 110 crore and a BE of Rs 300 crore.
The Ministry of Power budget is proposed to be increased to Rs 29,996.85 crore for 2026-27 from the RE of Rs 21,587.66 crore and a BE of Rs 21,847 crore this fiscal.