The Ministry of Power is enhancing India’s power transmission infrastructure with an ultra-high voltage alternating current transmission (UHV AC) system. Nine 1,100 kV lines and ten substations have been identified for development by 2034, with an investment of ₹530 billion (~$6.2 billion).

The Central Power Research Institute is developing the system’s testing facilities, according to Power Minister Manohar Lal.

Power evacuation infrastructure in India has lagged behind the pace of solar and wind energy capacity additions. Several transmission projects have been delayed due to challenges from right-of-way (RoW) issues, land acquisition, litigation, and securing forest, wildlife and tree-cutting approvals.

According to the Central Electricity Authority (CEA), delays due to implementation challenges on the ground have stretched timelines of transmission projects for up to 24 months to over five years in some cases.

Minister Lal said the government has increased compensation for land used for transmission lines to ease the RoW issues. Tower area compensation has gone up from 85% to 200% of the land value and from 15% to 30% for the RoW to directly link land value to market rates.

Haryana and Delhi had already adopted the new guidelines issued on March 21, 2025, he told a press conference.

In a move to attract more private investment and ensure financial discipline, the Late Payment Surcharge (LPS) Rules have been expanded to include intrastate transmission systems.  This crucial reform, previously applied only to interstate transmission systems, aims to expand the transmission networks within states to integrate higher levels of renewable energy.

The government had also expanded the Late Payment Scheme Rules to include intra-state transmission system networks, aiming to attract increased private investment. The expansion aims to have these networks absorb renewable energy, he said.

Lal said India successfully met its peak power demand of 241 GW on June 9, 2025.

The CEA has predicted India’s peak demand to touch 270 GW in 2025.

The Minister stated that India added 34 GW of energy generation capacity during 2024-2025, the country’s highest ever. Renewable energy accounted for 29.5 GW of this addition. India’s total installed capacity currently stands at 472.5 GW, increasing from 249 GW in 2014.

Lal said India’s national energy shortage has declined to 0.1% as of April 2025, reducing from 4.2% in 2013-2014.