Serentica Renewables is planning to invest $3.5 billion by March 2027, with annual investments of $1.5-2 billion thereafter, the Vedanta-group backed company’s chairman Pratik Agarwal has told Moneycontrol in an interview.

Agarwal, who is also the chairman of Resonia and managing director of Sterlite Electric, said Resonia plans to scale its assets to Rs 65,000 crore by FY27 and Rs 1 lakh crore by 2030 from Rs 35,000 crore.

Agarwal also talked about the impact of Iran war on the power sector, renewables and commodity prices and how AI and data centre expansion will impact power demand and in turn, reshape the transmission sector.

Edited excerpts of the interview:

How do you see India’s transmission buildout evolving, as renewable capacity targets accelerate?

India’s transmission sector is entering its most decisive decade. If India is targeting 600 GW of non-fossil capacity by 2032, the grid cannot be reactive, it has to be pre-emptive. 

The current ISTS (Inter-State Transmission System) plan envisages over 600,000 MVA of transformation capacity and around 67,000 circuit kilometres of lines by 2031. The size of the investment is bold and commendable but success lies in speed and sequencing.

Transmission must come ahead of generation, not after curtailment begins. A single year of curtailment can wipe out the life-long returns of a renewable project. We must understand and appreciate this sensitivity.

The next phase will be defined by long-distance HVDC (high voltage direct current) corridors and use of ROW (right of way)-friendly technologies like monopoles, insulated cross-arms and underground cabling. The grid is only as strong as the weakest link and the state transmission networks as well as some distribution networks are the new weak link. 

The focus will also shift away from just capacity addition to smart capacity utilisation and given the huge influx of inverter-based technologies like solar and batteries into the grid, there will be a need for smarter grid management to get the most out of grid investments.

How will the recently announced India–US deal impact the company?

Our direct exposure to current India–US trade developments is limited since the majority of our business serves the domestic Indian market.

At Sterlite Electric, we have consciously built a diversified export base, serving customers in more than 70 countries between FY23 and FY25. This diversification protects us from bilateral trade fluctuations.

At a broader level, deeper India–US cooperation in clean energy and advanced infrastructure is positive for the sector, though the operational impact on our business remains limited.

What are your growth roadmaps for Sterlite, Serentica Renewables and Resonia? How much in new capacity are you targeting this year and in the next fiscal and what are the investments lined up for these?

Serentica is focused on firm renewable energy solutions for hard-to-abate industries. Our approach is not plain-vanilla solar or wind, but round-the-clock renewable power backed by storage and hybrid configurations. 

We currently have over 7 GW under development and execution. By March 2026, we expect to reach around 2,500 MW of commissioned capacity, scaling to 5,000 MW by FY27.

We expect to invest $3.5 billion by March 2027, with annual investments of $1.5–2 billion thereafter. By FY27 we expect $5 billion in cumulative debt and equity commitments.

Resonia focuses on large interstate transmission infrastructure, particularly renewable evacuation corridors. We have already deployed 13,000+ circuit kilometres across 24 completed projects.

Today we manage assets worth Rs 35,000 crore, with plans to scale this to Rs 65,000 crore AUM by FY27, Rs 73,000 crore by FY28, and Rs 1 lakh crore by 2030.

Sterlite Electric focuses on conductors, OPGW (optical ground wire), cables and smart grid solutions. As transmission networks become denser and more complex, efficient conductors and digital monitoring systems will become central to grid optimisation. We are expanding manufacturing capacity, including a new facility in Vadodara.

How does you order book look like? How much of it is domestic and how much international? Which are the markets you are focusing on outside India?

As of March 31, 2025, Sterlite Electric’s order book stands at RS 74,490 million, up from Rs 45,880 million in March 2023, reflecting strong demand for our conductor and cable solutions.

The majority of our order book is domestic, aligned with India’s grid expansion.

Internationally, we have served customers across over 70 countries, while remaining selective about markets with strong transmission investment pipelines.

Are you exploring asset acquisition to grow your clean-energy portfolio? Are there any new ventures or associations that Serentica is looking for?

We continuously evaluate acquisitions that strengthen our firm renewable capability or transmission integration.

During this financial year, Serentica acquired Statkraft's India solar portfolio of over 1.5 GWp. By combining these assets with wind and storage, we are accelerating our ability to deliver round-the-clock renewable solutions to large industrial customers.

Our strategy is not just to aggregate megawatts, but to be India's largest clear-energy solution-provider for the C&I (commercial and industrial) sector and to build dispatchable renewable portfolios.

How prepared is the transmission network for rising solar and wind penetration? Which are the hurdles that remain in evacuating renewable power from resource-rich states?

India operates one of the largest synchronised grids globally and it has a system availability of above 99 percent. That is a major achievement.

The challenge now is not structural weakness but timing gaps and operational readiness gaps. In several renewable-rich states, generation capacity has come online ahead of evacuation infrastructure, leading to congestion and curtailment in some corridors.

Key bottlenecks include delays in intra-state transmission strengthening, right-of-way constraints, long lead times for HVDC and EHV (extra high voltage) equipment, and limited deployment of grid-enhancing technologies like dynamic line rating.

Sterlite has already filed the DRHP. What is the latest on the IPO plan?

Sterlite Electric Ltd filed its draft red herring prospectus (DRHP) in September 2025 and is currently in the regulatory review process.

The objective of the IPO is to support capex investments for expanding manufacturing capacity, particularly in power cables and advanced transmission products.

The listing timeline will depend on regulatory approvals and market conditions.

How will new labour codes impact project timelines in the transmission sector? Will labour formalisation materially increase project costs?

We view the new labour codes as progressive reforms that strengthen workforce formalisation, safety, and social security.

In the short term there may be some transitional adjustments, with labour-related costs expected to rise around 5–10 percent due to revised wage definitions and statutory contributions.

However, over time these reforms should improve productivity, workforce stability and execution quality across the infrastructure sector.

Will AI and data-centre expansion create new grid bottlenecks? What kind of upgrade will be needed in the transmission infra to support capacity additions?

AI and hyperscale data centres will reshape electricity demand patterns. These facilities require high reliability, large power capacity, and green energy sourcing, creating new load clusters around regions such as Navi Mumbai, Vizag and Hyderabad.

Supporting this growth will require reconductoring existing state transmission lines, stronger intra-state transmission planning, faster right-of-way resolution, and adoption of grid-enhancing technologies such as dynamic line rating.

Data centres are not just a demand opportunity – they are a grid-planning challenge and infrastructure planning must anticipate these loads several years in advance.

How will the Iran war impact business sentiment and investment coming into the country?

Geopolitical tensions in the Gulf can create short-term volatility in commodity prices and supply chains, which may lead to temporary inflationary pressures.

However, India's power sector is largely insulated because its growth is driven by strong domestic demand fundamentals.

Electricity demand continues to rise due to industrialisation, electrification, EV adoption, and data centre expansion, keeping the long-term investment cycle in renewable energy and transmission intact.

How will do India's recent bilateral trade agreements and energy pacts impact Sterlite? Do you expect increased business opportunities in these countries?

India’s expanding energy partnerships are significant because the global energy transition will require massive investments in grid infrastructure.

As renewable penetration rises worldwide, countries will need stronger transmission networks, advanced conductors, and digital grid technologies.

For Sterlite, this opens two opportunities – expanding exports of conductors and cables, and participating in global grid expansion and renewable integration.

In that sense, the energy transition is not only a domestic opportunity for India but also a platform for Indian companies to become global grid infrastructure partners. 

Read the full article: https://www.moneycontrol.com/news/business/serentica-renewables-to-invest-3-5-billion-by-fy27-ai-data-centres-to-reshape-power-demand-says-chairman-pratik-agarwal-13861619.html