Power Stocks Fall Despite Rs 1.86 Lakh Crore PM-DHARA Scheme: Tata Power, Adani Power, NTPC, Power Grid Share Price in Focus

Power stocks came under pressure on Thursday, 1 October 2026, despite a major policy push for the sector. A day earlier, the Union Cabinet approved the PM-DHARA scheme, a Rs 1,86,405 crore plan to strengthen intra-state transmission networks and deploy battery storage so that up to 135 GW of renewable energy can be moved through the grid.

Key names including Tata Power, Adani Power, NTPC and Power Grid were in focus, with Tata Power share price and Power Grid share price among those tracking the broader market lower. The fall shows how macro pressure, rather than sector news, is driving stocks right now.

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What Is the PM-DHARA Scheme?

PM-DHARA stands for PM-Developing Harmonized and Accelerated Renewable-energy Access. It aims to strengthen transmission within states and union territories, reduce congestion, and cut renewable power curtailment during peak periods, so that more solar and wind power reaches consumers.

Component	Amount
Total outlay	Rs 1,86,405 crore
Intra-state transmission under Green Energy Corridor Phase-III	Rs 1,36,378 crore
Battery energy storage (50 GWh)	Rs 50,000 crore
Central financial support	Rs 54,082 crore
Renewable capacity to be evacuated	Up to 135 GW
Target completion	FY2032-33

The central financial assistance is meant to offset intra-state transmission charges and keep power costs down. The government expects the scheme to mobilise about Rs 1.32 lakh crore of transmission investment and enable about Rs 4.6 lakh crore of investment in renewable capacity. It supports India's targets of 500 GW of renewable capacity by 2030 and 900 GW of non-fossil capacity by 2035.

Why Are Power Stocks Falling Despite the Scheme?

Power stocks are falling mainly because of broader market weakness. The Nifty 50 is on course for an eighth straight weekly loss, its longest such streak in 25 years, as record foreign selling, US Treasury yields near multi-year highs and high crude oil prices weigh on sentiment. In such conditions, even positive sector news often fails to lift stocks.

Timing also matters. The PM-DHARA scheme will be rolled out over several years until FY2032-33, so its benefits will flow gradually as states award projects. Markets may also have partly expected a transmission push, given India's renewable targets, limiting any immediate reaction.

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Which Power Stocks Could Benefit?

Although the stocks fell on Thursday, the PM-DHARA scheme creates a long pipeline of work across the power value chain. Potential beneficiaries include:

• Transmission EPC and equipment: Companies that build transmission lines and substations or make transformers and switchgear.
• Cables and conductors: Makers of conductors and power cables needed for new lines.
• Battery storage players: Companies developing or supplying battery energy storage, given the Rs 50,000 crore BESS component.
• Integrated utilities: Firms like Tata Power, with transmission, distribution and renewable businesses, could benefit as grid bottlenecks ease.
• Renewable developers: Better evacuation capacity can reduce curtailment and improve project returns.

Because PM-DHARA focuses on intra-state networks, much of the work will be executed by state transmission utilities and contractors, while companies such as Power Grid, which primarily operates the inter-state network, may see a more indirect benefit through competitive bidding opportunities.

Stock	Business focus
Tata Power	Generation, transmission, distribution, renewables
NTPC	Thermal and renewable generation
Power Grid	Inter-state transmission
Adani Power	Thermal generation

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What Investors Should Watch

Investors should track how quickly states prepare and award projects under PM-DHARA, the tender pipeline for transmission and battery storage, and quarterly order inflows for equipment and EPC companies. Broader factors such as bond yields, crude oil and FII flows will continue to drive near-term moves in power stocks.

Key Risks

• Execution delays: State-level implementation can be slow due to land, approvals and funding issues.
• Market conditions: Record FII selling and high yields may keep pressure on valuations.
• Valuations: Many power and transmission stocks already trade at premium multiples after strong rallies.

Bottom Line on Power Stocks

Power stocks fell on Thursday despite the Rs 1.86 lakh crore PM-DHARA scheme, as a weak market and the scheme's long timeline outweighed the policy boost. Over the coming years, the plan could create a large pipeline for transmission, equipment and battery storage companies. Consult a SEBI-registered advisor before investing in power stocks.

Frequently Asked Questions on Power Stocks and PM-DHARA

What is the PM-DHARA scheme?

Ans. PM-DHARA, or PM-Developing Harmonized and Accelerated Renewable-energy Access, is a Rs 1,86,405 crore scheme approved by the Union Cabinet on 30 September 2026 to strengthen intra-state transmission networks and evacuate up to 135 GW of renewable energy.

How is the PM-DHARA scheme funded?

Ans. The outlay includes Rs 1,36,378 crore for intra-state transmission systems under Green Energy Corridor Phase-III and Rs 50,000 crore for 50 GWh of battery energy storage. The Centre will provide Rs 54,082 crore as central financial support.

Why did power stocks fall despite the PM-DHARA scheme?

Ans. Power stocks fell on 1 October 2026 amid a weak broader market, record FII selling and high bond yields. The scheme's benefits will also play out over several years until FY2032-33, so it did not offer an immediate earnings boost.

Which stocks could benefit from the PM-DHARA scheme?

Ans. Companies in transmission EPC, transformers and switchgear, cables and conductors, and battery storage could benefit as states roll out projects. Integrated utilities with transmission and renewable businesses, such as Tata Power, may also gain over time.

When will the PM-DHARA scheme be completed?

Ans. The scheme is targeted for implementation by FY2032-33.

How does PM-DHARA support India's renewable energy targets?

Ans. It supports India's goal of 500 GW of renewable energy capacity by 2030 and 900 GW of installed non-fossil capacity by 2035 by reducing transmission congestion and renewable curtailment.

How much investment will PM-DHARA unlock?

Ans. The government expects the central funds to mobilise about Rs 1.32 lakh crore of transmission investment and enable an estimated Rs 4.6 lakh crore of investment in 135 GW of renewable capacity.