Stories
Green Energy Corridor Phase 3 Unlocks Massive Rs 23,500 Crore Opportunity for KEC and TRIL
- •The Green Energy Corridor Phase 3 is set to unlock a massive Rs 1.86 lakh crore opportunity to meet India's 900 gigawatts renewable energy target by 2035.
- •KEC International anticipates up to Rs 20,000 crore in additional orders, driven by a shift towards Tariff Based Competitive Bidding projects.
- •Transformers and Rectifiers projects a Rs 3,500 crore opportunity, with strong demand expected for transformers and energy storage systems.
- •Stringent project timelines, such as 15 months for solar lines, are expected to lower competition and potentially improve profit margins.
- •Both companies are actively expanding their capabilities and mitigating supply chain risks to capitalize on the upcoming infrastructure boom.
Key Questions Answered
The Green Energy Corridor Phase 3 is set to unlock a total order opportunity of ₹23,500 crore for both companies, with KEC International anticipating up to ₹20,000 crore and Transformers and Rectifiers (India) projecting a ₹3,500 crore opportunity.
The shift to Tariff Based Competitive Bidding (TBCB) transitions credit exposure away from financially strained state utilities to reliable developers such as Power Grid Corporation of India, Adani, and IndiGrid Infrastructure Trust.
The first two phases of the corridor saw capital outlays of ₹10,000 crore and ₹12,000 crore. Specifically, the Union Cabinet approved the second phase in January 2022 at a cost of ₹12,000 crore to add transmission lines and transformation capacity for about 20 GW of renewable energy across seven states.
