Power Stocks Fall Despite ₹1.86 Lakh Crore PM-DHARA Push; Tata Power, NTPC, Adani Power Slide

Power stocks remained under pressure on Thursday even as the government approved a large infrastructure programme aimed at strengthening India’s electricity grid. The Union Cabinet cleared the PM-DHARA scheme with a total outlay of ₹1,86,405 crore, targeting upgrades to intra-state transmission systems and greater integration of renewable power.

The scheme is designed to enable states and Union Territories to evacuate up to 135 GW of renewable energy. It also includes a substantial battery-storage component, intended to address the intermittency of solar and wind generation and improve grid flexibility.

The initiative comes as India’s electricity system faces a combination of rising demand and supply-side constraints. Electricity consumption has been increasing faster than earlier expectations, while coal inventories at thermal power plants have remained relatively low.

Power Stocks: Share Price Movement

Several major power stocks declined during Thursday’s session. The table below shows how they were performing at 11:06 am on 01 October 2026:

What Is The PM-DHARA Scheme?

The PM-Developing Harmonized and Accelerated Renewable-energy Access (PM-DHARA) scheme is focused on expanding intra-state transmission capacity and supporting battery energy storage.

The programme includes:

• ₹1,36,378 crore for intra-state transmission systems under GEC-III.

• ₹50,000 crore for 50 GWh of battery energy storage systems.

• ₹54,082 crore in total Central Financial Support.

• Implementation targeted by FY2032-33.

Battery storage can absorb surplus electricity when renewable generation is high and release it when output from solar or wind projects falls. This is intended to make renewable power easier to integrate into the grid.

Rising Power Demand Meets Tight Thermal Supply

The transmission push comes against a backdrop of stronger electricity demand. Month-to-date power demand has risen 15% year-on-year, while FY27 demand growth has reached 10%.

At the same time, coal availability at thermal plants has tightened. Power stations have around seven days of coal stocks, while more than 40% have less than a quarter of their required inventory.

The Ministry of Power has also directed 112 captive thermal power plants to operate at full capacity from October 1 to December 31, 2026. Authorities are considering mandatory imported-coal blending to address the supply constraint.

What The Scheme Means For Power Infrastructure

The government’s investment programme is expected to create additional requirements across the electricity infrastructure chain as transmission networks are expanded and renewable capacity is connected to the grid.

Potential areas of activity include:

• Transmission equipment

• Transformers and substations

• Grid infrastructure

• Battery energy storage

• Renewable power evacuation systems

Merchant power prices have also strengthened amid the demand-supply imbalance. September prices have doubled year-on-year so far, while Q2 FY27-to-date merchant prices averaged ₹5.7 per unit, up 46% from a year earlier.

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