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21% Increase in Investment for State-Owned Power Firms in FY26, Pledged By Centre

The Ministry of Power's budget is proposed to increase to Rs 21,847 crore for FY 2025-26
Indian Masterminds Stories

The Government of India has proposed a 21% increase in total investment by nine state-owned power sector firms, raising the allocation to Rs 86,138.48 crore for FY 2025-26, compared to the Revised Estimate (RE) of Rs 71,278.33 crore and Budget Estimate (BE) of Rs 67,286.01 crore for FY 2024-25, as per the Union Budget documents.

Also Read: Oil India Launches Wholly-Owned Subsidiary, OIL Green Energy Limited, to Pursue Renewable Energy Ventures

Key Allocations for Major Power PSUs

  • NTPC Ltd: Investment increased to Rs 26,000 crore from Rs 22,700 crore in FY25.
  • Power Grid Corporation: Allocation raised to Rs 25,000 crore, up from Rs 20,000 crore (RE) and Rs 12,250 crore (BE) in FY25.
  • SJVN Ltd: Investment set at Rs 12,000 crore for FY26, compared to Rs 7,000 crore (RE) and Rs 12,000 crore (BE) in FY25.
  • NHPC Ltd: Funding increased to Rs 13,000 crore from Rs 10,394 crore (RE) and Rs 11,193.19 crore (BE) in FY25.
  • Damodar Valley Corporation (DVC): Investment to rise to Rs 3,394.83 crore, up from Rs 3,116.30 crore (RE) and Rs 3,262 crore (BE) in FY25.
  • North Eastern Electric Power Corporation (NEEPCO): Investment Rs 2,600 crore, up from Rs 1,387 crore (RE) and Rs 1,841.18 crore (BE) in FY25.
  • Tehri Hydro Development Corporation (THDC): Allocation reduced to Rs 3,543.65 crore, down from Rs 5,814.35 crore (RE) and Rs 3,440.96 crore (BE) in FY25.
  • Chenab Valley Power Projects: Investment cut to Rs 300 crore, down from Rs 568.68 crore (BE) in FY25.
  • Grid-India: Investment Rs 300 crore, up from Rs 298 crore (RE) and Rs 30 crore (BE) in FY25.

Additionally, the Ministry of Power‘s budget is proposed to increase to Rs 21,847 crore for FY 2025-26, up from Rs 19,845 crore (RE) and Rs 20,502 crore (BE) in FY25.

This substantial increase in investment reflects the government’s commitment to strengthening India’s power infrastructure, accelerating renewable energy projects, and enhancing transmission capabilities to meet growing energy demands.

Also Read: RBI Governor Sounds Alarm on Rising Digital Frauds: Banks Urged to Act Fast


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