GEC-III Rollout: Power Grid, KEC International, and Tata Power Shares In Focus Amid Centre's Energy Infra Push

The Union Cabinet approved the Green Energy Corridor (GEC) Phase-III scheme on September 30, 2026. The scheme seeks to bolster India’s Intra-State Transmission System (InSTS) to enable evacuation and storage of renewable energy across states and Union Territories (UTs).

Following the approval of the scheme, select stocks within the renewable energy and power infrastructure space can potentially gain from the capital outlay made by the government on D-Street.

Rs 1.86 Lakh Crore Project Outlay

The GEC Phase-III scheme, which is also known as PM Dhara, has been designed to update state-level power infrastructure. While India has scaled up solar and wind capacity, evacuating this intermittent green power from generation pockets to consumption centres remains a challenge. The PM Dhara scheme seeks to address grid congestion and set up the power evacuation mechanism needed to support India’s overall target of 900 gigawatts of non-fossil fuel capacity by 2035.

According to a government release, the financial outlay for the scheme stands at Rs 1,86,405 crore, scheduled for execution through fiscal year 2033. The capital expenditure is sub-divided into two components. The largest share, amounting to Rs 1,36,378 crore has been allocated to InSTS to facilitate the evacuation of approximately 135 GW of green power, while the second component allocates Rs 50,000 crore exclusively to Battery Energy Storage Systems (BESS), aiming to install 50 GW of utility-scale storage capacity. Additionally, to ease the burden on state transmission utilities and keep consumer power tariffs competitive, the Centre has also committed Rs 54,082 crore in central financial assistance.

Which Sectors And Stocks Are Likely To Gain

The targeted capital expenditure is likely to create a multi-year order pipeline for select segments within the renewable energy sector. Companies tasked with manufacturing equipment, laying high-voltage lines, and deploying battery farms are likely to benefit from the scheme. The primary beneficiaries are expected to be from transmission engineering, procurement, construction sector, utility-scale transmission asset operators, grid infrastructure specialists, and energy storage developers.

Power Grid Corporation of India

Power Grid Corporation of India (PGCIL) is one of the stocks likely to benefit from the scheme’s transmission rollout. While the state-owned power sector player focuses primarily on inter-state transmission lines, it has been expanding its footprint into intra-state networks through the tariff based competitive bidding route. According to the company’s investor presentation for FY26, the company’s order pipeline includes 21 InSTS projects estimated to be worth nearly Rs 17,574 crore.

In terms of financial exposure, the company functions as almost a pure-play transmission infrastructure. In FY26, the company generated consolidated total income of Rs 47,684 crore. The majority of this top-line income came directly from transmission service charges which accounted for Rs 43,962 crore or 92.19 per cent of total income. The company also earned Rs 1,755 crore from its consultancy business. Given the Rs 1.36 lakh crore outlay to bolster the intra-state network, the company can potentially secure high-value bidding packages and project advisory contracts. At the time of writing, the shares of PGCIL were trading at Rs 253. 20 apiece, down by 2.80 per cent, on the NSE.

Adani Energy Solutions

Adani Energy Solutions is also likely to gain as it is among India’s most active private transmission and utility players. The company’s core operations are tied to both parts of the PM Dhara scheme. According to the company’s investor presentation for FY26, the company has an operational footprint across 14-16 Indian states.

Its portfolio includes dedicated intra-state transmission packages won under tariff-based competitive bidding (TBCB) scheme as well as cost-plus regulated asset base arrangements, and dedicated intra-state project assets located in Madhya Pradesh, Uttar Pradesh, Rajasthan, and Maharashtra and Mumbai Grid.

In FY26, the company recorded operational revenues of Rs 18,213 crore, driven almost entirely by its transmission network revenue which amounted to Rs 12,450.

In the BESS space, Adani Energy Solutions is likely to benefit through its integrated utility model. Though the company does not log standalone BESS revenue in its financial statements, it incorporates utility-scale battery storage alongside solar, wind, and pumped hydro within its energy solutions platform. Shares of Adani Energy Solutions were trading higher by 0.14 per cent at Rs 1,316.50 apiece on the NSE at the time of writing.

KEC International

KEC International is likely to benefit from the scheme, as state transmission utilities and private developers tender out the physical construction of high-voltage lines, towers, and substations.

While the asset owners finance and operate the transmission lines, the engineering, procurement, and construction (EPC) contractors are the ones who handle the ground execution. KEC has a track record of working with state electricity boards and private utilities across India, making it a likely contender for intra-state EPC contracts. As on March 31, 2026, the domestic market accounted for 52 per cent of the company’s Rs 36,267 crore order book. Additionally transmission and distribution (T&D) made up 63 per cent of this total backlog.

The company’s investor presentation for FY26 said that out of its total consolidated revenue of Rs 23,506 crore in fiscal year 2026, the T&D segment accounted for 68 per cent, generating roughly Rs 15,883 crore. KEC International shares traded at Rs 368.75 apiece on the NSE, down by 2.25 per cent, at the time of writing.

Tata Power

Tata Power is likely to benefit across both the intra-state transmission and battery storage components of the scheme due to its integrated utility model and aggressive capital reallocation.

The conglomerate has been transitioning away from thermal operations, redirecting its capital expenditure toward grid networks and green energy. According to the company’s Integrated Annual Report for fiscal year 2026, T&D accounted for 19 per cent of its total capital employed, while clean and green businesses represented 46 per cent.

On the transmission front, the company is likely to gain from the Rs 1.36 lakh crore InSTS outlay, as state utilities auction new grid packages under competitive bidding. Tata Power manages a transmission portfolio of 7,403 circuit kilometres, which includes 5,562 circuit kilometres of operational network and 1,841 circuit kilometres under construction, maintaining an availability rate of 99.90 percent.

Simultaneously, Tata Power is likely to benefit from the Rs 50,000-crore capital earmarked for 50 gigawatt-hours of BESS. The company has secured a 30 megawatt and 120 megawatt-hour standalone Battery Energy Storage Purchase Agreement from NHPC for the Kerala State Electricity Board. At the time of writing, Tata Power Company shares were trading at Rs 347.15 apiece on the NSE, down by 3.27 per cent.

Bidding Dynamics And Outlook

The financial realisation of the outlay for these companies remains to be seen, as projects under the Green Energy Corridor Phase-III scheme will be subject to competitive tariff-based bidding, state utility approvals, and timely right-of-way clearances. However, these market leaders can potentially benefit from the outlay on account of their operating track record and proven revenue generation from intra-state transmission infrastructure.