Govt Clears Bigger Investment Power for POWERGRID
Equity limit per subsidiary raised to ₹7,500 crore to fast-track green energy transmission
- Cabinet approves higher equity investment limit for POWERGRID subsidiaries
- Threshold raised from ₹5,000 crore to ₹7,500 crore per subsidiary
- 15% net worth cap remains unchanged
- Move to accelerate renewable energy evacuation and grid expansion
GG News Bureau
New Delhi, 24th Feb: The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved enhanced delegation of powers to Power Grid Corporation of India Limited under existing Department of Public Enterprises guidelines applicable to Maharatna CPSEs.
The approval increases the permissible equity investment limit for POWERGRID from ₹5,000 crore to ₹7,500 crore per subsidiary, while retaining the overall cap of 15% of the company’s net worth.
The move is expected to strengthen POWERGRID’s capacity to invest in large-scale transmission projects and support the evacuation of renewable energy, aligning with India’s target of achieving 500 GW of non-fossil fuel-based energy capacity.
With the enhanced limit, POWERGRID will be better positioned to participate in capital-intensive transmission projects such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks. The decision is also likely to widen competition in Tariff Based Competitive Bidding (TBCB) processes for critical transmission projects, ensuring improved price discovery and facilitating affordable and clean energy access for consumers.
As the country’s largest and most experienced transmission service provider, POWERGRID’s expanded investment capability is expected to play a central role in strengthening India’s power infrastructure and supporting its clean energy transition.
