Cables and conductors are critical components of the power transmission and distribution (T&D) network, forming its backbone and enabling the seamless flow of electricity. With the growing demand for reliable power supply driven by rapid urbanisation, industrialisation and the integration of renewable energy sources (RES), the cables and conductors market has witnessed significant expansion. This expansion reflects technological advancements in technology, increasing investments in infrastructure and a focus on enhancing transmission efficiency while minimising energy losses.
The robust growth of India’s T&D sector has led to significant asset creation, driving the demand for cables and conductors. As per the Central Electricity Authority’s (CEA) latest data, the aggregate transmission line length at the 220 kV and above voltage levels stood at 490,306 ckt km as of October 2024. The overall line length increased from 291,336 ckt km during 2013-14 to 485,544 ckt km during 2023-24, recording a CAGR of 5.24 per cent. In terms of voltage, significant capacity and lines have been added at the extra high voltage (EHV) levels, with 400 kV and 220 kV lines accounting for 84.69 per cent of the aggregate transmission line length, followed by 765 kV lines, with a share of 11.36 per cent. High voltage direct current (HVDC) networks currently have a small share in the total line length (1.92 per cent, 1.97 per cent and 0.06 per cent at the ± 500 kV, ± 800 kV and ± 320 kV HVDC levels respectively), but are expected to witness strong growth in the next few years.
Going forward, the government’s focus on building new lines and RES infrastructure to achieve the 500 GW renewable energy target by 2030, modernising the ageing infrastructure and revamping the distribution grid under the Revamped Distribution Sector Scheme (RDSS) bodes well for the cables and conductors industry. According to the latest National Electricity Plan (NEP) projections, India will invest approximately INR9.16 trillion in power transmission infrastructure by 2032.
Market growth trends
The growth of the cables and conductors market is primarily driven by the expansion of the power and infrastructure sectors. This growth is underscored by strong performance in both exports and domestic demand. According to the Indian Electrical and Electronics Manufacturers’ Association, the sector has maintained a favourable trade balance, particularly in conductor and cable exports. Indian players are tapping into growing markets in Asia, Africa and Latin America by offering reliable and competitively priced products tailored to local requirements.
During 2022-23, conductor imports were valued at INR7.97 billion, while exports rose to INR55.04 billion. This trend continued into 2023-24, with conductor imports increasing to INR9.45 billion and exports rising to INR58.81 billion, reflecting steady international demand for Indian conductors.
A similar growth pattern was observed in the HV and low voltage (LV) cable segment. In 2022-23, HV and LV cable imports stood at INR17.34 billion, while exports were significantly higher at INR68.9 billion. This momentum strengthened in 2023-24, with imports increasing to INR21.58 billion and exports soaring to INR80.05 billion. These figures highlight the robust export capabilities of the Indian cables industry.
In the domestic market, the cables industry recorded a significant growth of 23.6 per cent in 2023-24 over the previous year. The conductor segment, although growing at a slower pace, recorded a modest growth of 2.1 per cent during the same period. These figures highlight the dynamic nature of the cables market and the steady performance of the conductors segment, driven by domestic infrastructure projects and export demand.
Opportunities and growth drivers
The government’s latest notified NEP outlines substantial investments in RES evacuation infrastructure over the next few years to evacuate more than 600 GW of renewable energy by 2032. Over the 10-year period from 2022-23 to 2031-32, the NEP aims to add more than 191,000 ckt km of transmission lines and 1,270 GVA of transformation capacity at the 220 kV and above voltage levels. The transmission network is projected to expand from 485,000 ckt km in 2024 to 648,000 ckt km by 2032. During this period, the transformation capacity is projected to grow from 1,251 GVA to 2,342 GVA.
The grid is expected to witness a significant capacity addition of 33 GW of HVDC bipole links, and an increase in interregional transmission capacity from the current 119 GW to 143 GW by 2027 and 168 GW by 2032. Furthermore, the transmission grid expansion plan entails cross-border connections to be set up with neighbouring countries like Nepal, Bhutan, Myanmar, Bangladesh and Sri Lanka. In addition, the plan envisages transmission interconnections with green hydrogen hubs and offshore wind energy plants in Gujarat and Tamil Nadu over the next 8-10 years.
Meanwhile, RDSS, aimed at modernising and strengthening power distribution infrastructure, is gaining momentum. The scheme has an outlay of INR3,037.58 billion with a gross budgetary support of INR976.31 billion from the Government of India over a period of five years from 2021-22 to 2025-26. As of August 2024, projects worth INR2,620 billion have been sanctioned for distribution infrastructure works and smart metering works under the scheme. The huge capex being undertaken on the distribution side has provided a significant impetus to the domestic industry. The overall physical progress in loss reduction and smart metering under the RDSS is currently at 17.09 per cent and 3.28 per cent respectively (as per the RDSS dashboard accessed on November 22, 2024).
Meanwhile, the launch of the Pradhan Mantri Suryodaya Yojana in January 2024 for the installation of rooftop solar for 10 million homes has provided an incentive to cable makers. Also, the ongoing transition towards electric vehicles (EVs) is driving increased demand for charging stations, thereby increasing the uptake of cabling solutions.
Recent developments
On March 27, 2024, CEA issued an advisory on implementing the Bureau of Indian Standards (BIS) standards and quality control orders for aluminium ingots, wire rods, and wires used in manufacturing conductors and cables. These include compliance with standards such as IS 5484 and IS 2067 for aluminium rods and wires, and IS 4026 for aluminium ingots.
The CEA also recommends the adoption of high-performance conductors (HPCs) made from diverse materials, including galvanised steel, zinc alloy and fibre-reinforced composites. While India lacks adequate test facilities for HPCs, leading to reliance on international testing centres and increased costs, these conductors provide cost efficiencies over time. Despite being two to three times more expensive than conventional conductors, HPCs reduce losses and associated operational expenses, making them an economically viable choice in the long term.
Additionally, in May 2024, CEA released guidelines for testing the carbon fibre composite (CFC) core of high-temperature low-sag (HTLS) conductors. The advisory emphasises including a mandatory ‘galvanic protection barrier layer thickness test’ in power sector procurement tenders, aligned with the ASTM B987 standards. It further specifies that the salt spray test is unsuitable for determining the thickness of the galvanic protection barrier layer on CFC cores, as no correlation exists between the two tests.
Technology trends
Cross-linked polyethylene (XLPE) cables are being increasingly adopted by utilities due to their superior performance characteristics. These cables exhibit higher resistance to thermal deformation, attributed to their elevated thermal tolerance, which enhances their current-carrying capacity compared to conventional cables. Additionally, XLPE cables provide improved tensile strength, elongation and impact resistance, making them suitable for HV and EHV applications, supporting operations up to 132 kV.
In regions where acquiring right of way (RoW) is challenging, utilities are deploying underground cable systems. A notable example is the ±800 kV Raigarh–Pugalur HVDC link, commissioned during 2021-22 by Power Grid Corporation of India Limited (POWERGRID). This project includes Bipole-II (Poles-III and IV of 1,500 MW each) and the ±320 kV, 2,000 MW Pugalur–Trichur voltage source converter-based HVDC system. A unique feature of this initiative is the integration of overhead lines with underground cables to address limited transmission corridor availability in Kerala.
New cable designs are emerging for specialised applications. Solar cables, for example, are engineered to evacuate solar energy from PV modules, and withstand high ultraviolet radiation, extreme temperatures and harsh weather conditions. Similarly, wind power cables are designed for the particular demands of wind energy systems.
E-beam cross-linked cables are gaining traction due to their enhanced durability, higher temperature resistance, increased current-carrying capacity, and reduced thickness. These cables find applications in steel mills, electric overhead cranes, ships and power stations. Emerging cable technologies also include warm dielectric and cryogenic dielectric cables.
On the conductor front, advancements such as HTLS, high surge impedance loading and gas-insulated line (GIL) conductors are transforming transmission capabilities. These conductors have been utilised in projects like the recent 132 kV lines bid out by Odisha Power Transmission Corporation Limited, the 400 kV Meerut–Kaithal double-circuit (D/C) line and the Nathpa-Jhakri hydro project. These conductors increase the transfer capability of transmission lines while reducing line losses. HTLS conductors can withstand high operating temperatures and operate at around 30 per cent more current-carrying capacity than conventional conductors. They can help in achieving greater ampere capacity (ampacity) without significant modifications to existing towers.
A major application of HTLS conductors is in reconductoring/uprating existing lines to increase their power transfer capacity. Currently, POWERGRID is reconductoring lines with high temperature endurance conductors to double the capacity of the transmission corridor. These lines include the 400 kV D/C lines like the Maithon–Maithon–RB; Siliguri–Bongaigaon; Kolhapur–Kolhapur (Maharashtra); and Pirana–Pirana (Torrent) lines; the 400 kV NP Kunta–Kolar single-circuit (S/C) line; 220 kV D/C lines like the Alipurduar–Salakati and BTPS–Salakati lines; and 132 kV S/C lines like the Dimapur–Imphal and the Loktak–Jiribam lines.
High-temperature superconducting (HTS) power cables are capable of carrying 5–10 times the current of traditional conductors, but have yet to see commercial deployment in India. For now, aluminium conductor steel-reinforced and all-aluminium alloy conductors remain widely used for overhead power transmission in the country’s T&D systems.
Challenges and the way forward
The cable and conductor industry, while positioned for substantial growth, faces several significant challenges that could hinder its progress. Volatile raw material prices, particularly for copper, strain profit margins and erode global competitiveness. Rising fuel costs further compound this issue by escalating transportation expenses. In addition, the industry remains partially unorganised, with some manufacturers failing to comply with quality standards, resulting in inconsistent product offerings. Other challenges include the increasing cost of commodities and crude oil, and inflationary pressures, which collectively impact production costs. The sector also faces persistent right-of-way (RoW) issues, which hinder the seamless execution of projects despite advancements aimed at minimising RoW requirements.
Looking ahead, the industry is expected to benefit from sustained demand, driven by the expansion of the T&D network and the integration of large-scale renewable energy projects. The rapid growth of the renewable energy sector has spurred demand for specialised cables that can handle the unique requirements of solar power plants and wind farms. These projects often involve long-distance transmission lines and complex grid connections, necessitating reliable and high-quality cable solutions. As India continues to expand its renewable energy capacity, the demand for cabling solutions is expected to surge.
Initiatives like Make in India, production-linked incentive (PLI) and Aatmanirbhar Bharat have been instrumental in reducing import dependency and boosting domestic manufacturing. By leveraging these opportunities and fostering innovation, the industry can address existing challenges and achieve long-term resilience and competitiveness.
