Power stocks came under pressure in Thursday’s trading session, with several major names declining even as the government announced a major ₹1.86 lakh crore push to strengthen the country’s power transmission infrastructure and integrate renewable energy into the grid.
Tata Power fell 1.7% to ₹353.95, while Torrent Power declined 1.7% to ₹1,224. Adani Power slipped 1.6% to ₹200.55 and Power Grid fell 1.4% to ₹256.85. NTPC was down 1.1% at ₹318.25.
Among other power stocks, JSW Energy declined 0.8%, while Suzlon Energy fell 0.7%. Vedanta Power was down 1.3% at ₹32.44.
The weakness in the sector came against the backdrop of the Union Cabinet’s approval of the PM-DHARA scheme, a major infrastructure initiative aimed at strengthening intra-state power transmission and supporting the integration of renewable energy into the electricity grid.
₹1.86 lakh crore PM-DHARA scheme details
The Union Cabinet on Wednesday approved the ₹1.86 lakh crore PM-DHARA Scheme. PM-DHARA stands for PM-Developing Harmonized and Accelerated Renewable-energy Access. The initiative has been designed to strengthen the intra-state transmission system and deploy 50 GWh of battery storage to help evacuate up to 135 GW of renewable energy.
According to an official statement, the Union Cabinet chaired by Prime Minister Narendra Modi approved the PM-DHARA Scheme as part of efforts to expand India’s power infrastructure. The scheme assumes significance in view of the country’s ambitious target of achieving 500 GW of renewable energy capacity by 2030.
The PM-DHARA scheme is essentially aimed at strengthening India’s power transmission network so that more renewable electricity can be generated and transported to areas where it is needed. The ₹1.86 lakh crore scheme will support the expansion and upgrade of intra-state transmission infrastructure, enabling states to evacuate up to 135 GW of renewable power.
A key component of the scheme is the allocation of ₹50,000 crore for 50 GWh of Battery Energy Storage Systems (BESS). Battery storage is important because solar and wind generation is intermittent, with electricity output fluctuating depending on sunlight and wind conditions.
The deployment of battery storage can help store surplus electricity when renewable generation is high and supply it when generation falls. This can make the power grid more flexible and reliable while supporting the larger integration of renewable energy.
For companies operating across the power value chain, the scheme could translate into increased demand for transmission equipment, grid infrastructure, transformers, substations and energy-storage systems over the coming years. It is also expected to support the broader expansion of renewable energy capacity by improving the ability of the grid to absorb and transmit green power.
The initiative will strengthen India’s Intra-State Transmission System (InSTS) to enable the evacuation of up to 135 GW of renewable energy across States and Union Territories.
The scheme is targeted to be set up by FY 2032-33, with a total project outlay of ₹1,86,405 crore. This comprises ₹1,36,378 crore for the development of Intra-State Transmission Systems (InSTS) under GEC-III and ₹50,000 crore for 50 GWh of BESS.
The scheme involves total Central Financial Support of ₹54,082 crore.
Jefferies on Power sector – top picks
India’s electricity market is witnessing a sharp pickup in demand even as thermal generators face tighter coal availability, creating a more supportive operating environment for power companies. Jefferies remains positive on the sector and has identified Adani Energy Solutions, JSW Energy and NTPC as its top picks.
The Ministry of Power has directed 112 captive thermal power plants to run at full capacity between October 1 and December 31, 2026, using emergency powers under Section 11. The move comes as electricity consumption has outpaced expectations, with month-to-date demand rising 15% year-on-year and FY27 demand growth reaching 10%, versus Jefferies’ earlier full-year estimate of 7%. The brokerage linked part of the increase to greater cooling demand following below-average rainfall in Q2.
The supply side, however, remains constrained by lower coal inventories. Thermal plants now have around seven days of coal stocks, while over 40% have less than 25% of their required inventory. The Ministry is considering compulsory blending of imported coal to address the shortage.
The supply-demand imbalance has also lifted merchant power prices, which have doubled year-on-year in September 2026 so far. Q2 FY27-to-date merchant prices averaged ₹5.7 per unit, up 46% year-on-year and 12% quarter-on-quarter.
Jefferies expects utilities to maintain their FY26-29E earnings trajectory on execution-led growth. It highlighted JSW Energy and NTPC, while citing Adani Energy Solutions’ visible medium-term EBITDA growth of more than 20%.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
