By Kshipra Petkar | Raghav Aggarwal
Securing diverse sources of capital, including foreign investments, both debt and equity, will be crucial to bridge the funding gap for energy transition-related infrastructure, according to Moody’s Ratings.
“We expect the private sector to remain active in India & renewable energy sector, while government-owned companies will also increase their role,” Abhishek Tyagi, vice president and senior credit officer at Moody’s said. “Solar and wind power will dominate new generation capacity additions over the next 20-25 years, with smaller nuclear and hydropower additions,” Tyagi said. Over the next decade, the rating agency expects the investments in power sector to constitute 2% of the real GDP.
He also said that the strong economic growth would indicate that India would expand its coal-based power generation capacity by 32%-35% (or around 70GW-75GW) over the next 10 years.
On the road segment, Moody’s affiliate ICRA said that the project awarding in road segment, which had slowed down for 6-8 quarters, is expected to improve only in second half of FY2026. “The revenue growth of road developers is likely to remain subdued over the next 12-15 months, as it takes 6-9 months from project awarding to on-ground execution (first billing milestone),” Ashish Modani, senior vice president and group head, corporate ratings at ICRA said.
“Road developers are expected to bid aggressively for central government roads projects to build the shrinking order book, which will keep their operating profitability under pressure,” adds Modani.
