Standing tall amidst the ruins

Transmission players continue to see increasing investor interest

While investors stuck in the debt-laden power generation sector are failing to see any light at the end of the tunnel, the power transmission business is seeing a lot of investor interest. The story being sold thus: Power transmission companies are expected to see a pick-up in their order book as the growth rate of transmission capacity has been lagging behind the rate of power generation. So, any ramp-up on the supply side will directly benefit the transmission companies.

During FY09–15, Power Grid's network expanded at approximately 9% annually, while state-owned networks have expanded by 3-4%. Meanwhile, generation capacity has grown at 9.5% compounded over FY07-15. In June, 2015, India had a installed capacity of 275 gigawatt. Analysts at Anand Rathi estimate that to bridge the gap between generation and transmission infrastructure, $75 billion worth of investments would be required over the next 5-7 years. To take advantage of


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