India can build solar and wind plants faster than it can move the power they generate. That mismatch is what the Union Cabinet has now moved to fix, clearing a ₹1.86 trillion scheme to strengthen the country’s power grid and carry renewable energy to where it is needed.
Brokerage Motilal Oswal sees the scheme as a positive for several listed utilities and clean-energy companies. In the same note, it initiated coverage on Torrent Power with a Neutral rating. Below is what the scheme includes, why India needs it now, and which stocks the brokerage has put in focus.
What the scheme covers?
The plan is called Green Energy Corridor Phase-III. It is designed to enable the evacuation of 135 GW of renewable energy by FY33.
The ₹1.86 trillion outlay is split into two parts:
- ₹1.36 trillion for state transmission networks
- ₹0.5 trillion for 50 GWh of battery storage
To help keep power costs down, the Centre will provide ₹540.8 billion in financial support.
Why India needs it now?
India’s renewable capacity has grown to about 263 GW, and the country aims to pass 500 GW by 2030. Capacity is not the only issue, though. Moving the power is.
The first two phases of the Green Energy Corridor were designed for about 44 GW, and around 26 GW had been integrated as of early 2026. Meanwhile, solar and wind projects keep piling up in Gujarat, Rajasthan, Karnataka and Andhra Pradesh. That is creating bottlenecks inside state grids, where the existing lines cannot carry all the power being produced.
The new phase targets the missing links: high-voltage lines, substations and pooling stations.
How the work will be awarded?
This detail matters for investors. According to Motilal Oswal:
- Greenfield transmission projects will be awarded through competitive bidding. The brokerage sees an additional ₹200-240 billion of annual bidding opportunity for players such as Power Grid and Adani Energy Solutions.
- Brownfield upgrades (improvements to existing lines) will be done on a cost-plus basis, which supports a steady capex pipeline.
The six stocks in focus
Transmission: Power Grid, Adani Energy Solutions and Torrent Power
Motilal Oswal lists Power Grid and Adani Energy Solutions as beneficiaries of the extra bidding opportunity, along with Torrent Power.
Renewable developers: Acme Solar and JSW Energy
Better grid connectivity should help Acme Solar and JSW Energy. Both face project delays when the power they generate cannot be evacuated. A stronger grid addresses that problem directly.
Battery equipment: Premier Energies
The 50 GWh battery storage component gives clear demand visibility for Premier Energies, a battery-focused equipment maker. The brokerage adds that more demand could also bring greater policy focus on customs duties and domestic-content rules.
Torrent Power: why Motilal Oswal is only Neutral
Torrent Power is the one stock where the brokerage has taken a cautious stance, so it deserves a closer look.
The rating. Motilal Oswal initiated coverage at Neutral with a target price of ₹1,270. That is only about 4% above the current price of ₹1,220, so the brokerage sees limited upside from here.
The business. Torrent is an integrated utility with 6.6 GWp of capacity, including about 4.5 GW of thermal and 2.1 GWp of renewables. It plans to grow its renewable portfolio to about 6.3 GWp by FY29. Its distribution loss is just 2.3%, well below peers such as Adani Energy (about 4%) and CESC (6-8%).
The concern is valuation. Torrent trades at 13.6x FY27E EV/EBITDA, compared with a one-year forward average of 8.4x. In other words, the stock is priced well above its own recent history. The brokerage expects EBITDA to grow 17% a year and profit after tax just 7% a year over FY26 to FY29E. Its EBITDA growth of 18% over FY26 to FY28E also trails JSW Energy (25%) and Tata Power (27%).
The takeaway is that Torrent is a strong business, but the brokerage believes much of that strength is already in the price.
Reading this with care
A few points are worth keeping in mind before drawing conclusions from this story:
- It is one brokerage’s view. Motilal Oswal’s opinion is a research call, and other analysts may see these stocks differently.
- A scheme is not a contract. Benefits for individual companies depend on who wins the bids and how quickly projects are executed.
- Timing is long. The scheme runs to FY33, so any impact on company earnings will be gradual.
- Prices change. The ₹1,220 figure for Torrent Power was the price at the time of the report.
Key takeaways
- The Cabinet has cleared a ₹1.86 trillion plan (Green Energy Corridor Phase-III) to evacuate 135 GW of renewable power by FY33.
- ₹1.36 trillion goes to state transmission networks, and ₹0.5 trillion to 50 GWh of battery storage.
- Motilal Oswal sees ₹200-240 billion of extra annual bidding opportunity for transmission players.
- The brokerage has Power Grid, Adani Energy Solutions, Torrent Power, Acme Solar, JSW Energy and Premier Energies in focus.
- It initiated Torrent Power at Neutral with a ₹1,270 target because of its high valuation.
Frequently asked questions
What is Green Energy Corridor Phase-III?
- It is a ₹1.86 trillion scheme cleared by the Cabinet to strengthen India’s power grid and enable the evacuation of 135 GW of renewable energy by FY33.
How is the ₹1.86 trillion divided?
- ₹1.36 trillion goes to state transmission networks and ₹0.5 trillion to 50 GWh of battery storage. The Centre will provide ₹540.8 billion in financial support.
Which stocks has Motilal Oswal highlighted?
- Power Grid, Adani Energy Solutions, Torrent Power, Acme Solar, JSW Energy and Premier Energies.
What is Motilal Oswal’s rating on Torrent Power?
- Neutral, with a target price of ₹1,270, about 4% above the ₹1,220 price at the time of the report.
Why does India need this grid upgrade?
- Renewable capacity has reached about 263 GW, but solar and wind power is piling up in states like Gujarat, Rajasthan, Karnataka and Andhra Pradesh, creating bottlenecks in state grids.
