India has inked deals with Saudi Arabia and the UAE to supply electricity via undersea cable stretching approximately 1,700 km and 1,400 km, respectively, Power Minister Manohar Lal Khattar said.
“The government has signed agreements with Saudi Arabia and the UAE to export 2 GW of power to both countries. The 1,700 km subsea cable to Saudi Arabia will cost Rs 47,000 crore, whereas the 1,400 km cable to the UAE will cost Rs 43,500 crore,” Khattar said while speaking to the media on the achievements of his ministry over the last 11 years.
The minister also announced that the waiver of Inter-State Transmission System (ISTS) charges for storage projects has been extended until 30 June 2028. “This will benefit pumped storage projects awarded and battery energy storage systems commissioned before this date,” he said.
He said, “India successfully met the peak power demand of 241 GW on 9 June 2025. This achievement underscores the nation’s robust power infrastructure, with zero peak shortage reported.”
On addressing right-of-way (RoW) issues for transmission lines, the minister said the central government has increased compensation for land used in laying transmission lines to ease RoW challenges. “Compensation for the tower area has jumped from 85% to 200% of the land value, and for the Right of Way (RoW) corridor from 15% to 30%, directly linking land value to market rates.”
A primary issue in transmission development in India is RoW, as a significant amount of time is lost in obtaining land and permissions across the various parcels through which the transmission lines have to pass. The route may cut across forest land, defense zones, or a variety of private and agricultural lands.
The minister also highlighted that India added its highest-ever generation capacity of 34 GW during 2024–25, with renewable energy accounting for 29.5 GW. The nation’s total installed capacity now stands at 472.5 GW, up from 249 GW in 2014.
It must be noted that India began conversations to link its power grid to those of Saudi Arabia and the United Arab Emirates through undersea cables in 2023. India’s power ministry circulating Cabinet notes for inter-ministerial consultation had initiated the process to expand access to reliable power and enhance the country’s energy security.
