India will invest Rs 68,256.70 crore on eight public sector power companies in 2016-17 as against Rs 58,642.89 crore a year ago, according to the Union Budget 2016 document.
The biggest allocation for investment has been done for power generator NTPC, followed by transmission company Power Grid Corporation of India.
NTPC's capex for 2016-17 is pegged at Rs 30000 crore, an increase from Rs 25,000 crore a year ago. This comes at a time when most private sector generators are shying to take up new projects in conventional power as they struggle with stretched balance sheets and loss making power distribution companies are not signing power purchase agreements.
Power Grid Corporation of India will spend Rs 22,500 crore in 2016-17 on capital expenditure, same as last year.
The government will invest Rs 5,000 crore via Power Finance Corporation, while no investment was set aside last year.