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Maharashtra State Electricity Transmission Company Plans Rs1.5 Lakh Crore Investment in Transmission Network

State utility to scale up grid infrastructure over five to seven years as renewable share targets 60% by 2030. The Maharashtra State Electricity Transmission Company (MSETCL) has outlined plans to invest Rs1.5 lakh crore over the next five to seven years to expand and modernise its transmission network across the state.

Speaking at the Mumbai Climate Week, Sanjeev Kumar, Chairman and Managing Director of MSETCL, said projects worth Rs25,000–Rs30,000 crore are expected to move into execution within the next six months.

He noted that the utility currently has Rs7,000 crore worth of projects on its books and anticipates generating an additional Rs3,000 crore by the end of FY26, taking its immediate investment capacity to around Rs10,000 crore.

Kumar explained that with an equity contribution of 25–30%, the company can leverage additional funding for expansion. He added that the introduction of tariff-based competitive bidding (TBCB) has significantly improved funding visibility.

“With TBCB in place, financing is no longer a constraint. We can secure annual tariff revenue streams for up to 35 years,” he said, highlighting that the primary challenge now is the replacement and strengthening of ageing infrastructure.

More than 40% of MSETCL’s transmission lines are over 35 years old, necessitating substantial upgrades. The utility is currently the country’s largest state transmission entity, operating over 1,40,000 MVA of transmission capacity and managing a network of approximately 52,000 circuit kilometres (ckm).

Kumar also indicated that the share of renewable energy in the state’s capacity mix is projected to increase from 30% in 2023 to 60% by 2030, requiring significant grid enhancements to integrate green power.

In a separate panel discussion, Lokesh Chandra, Chairman and Managing Director of Maharashtra State Electricity Distribution Company Limited, said the state plans to develop 2.5 GW of round-the-clock renewable energy capacity. The initiative is expected to attract investments of nearly Rs30,000 crore through tariff-based competitive bidding by private sector participants.