The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved a proposal to enhance the equity investment limit of Power Grid Corporation of India Limited (Powergrid) from ₹5,000 crore to ₹7,500 crore per subsidiary. The decision was taken at the committee’s first meeting held at the Prime Minister’s new office, Seva Teerth.
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the approval grants enhanced delegation of powers to Powergrid under the Department of Public Enterprises (DPE) guidelines dated February 4, 2010, applicable to ‘Maharatna’ Central Public Sector Enterprises (CPSEs).
“The CCEA has approved enhanced delegation to Powergrid. The permissible equity investment limit has been increased from the existing threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the existing cap of 15 per cent of the company’s net worth,” Vaishnaw said.
The move is expected to strengthen Powergrid’s ability to bid for capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks. As the country’s largest transmission service provider, the CPSE will now be better positioned to expand investments in its core business and facilitate evacuation of renewable energy.
The enhanced investment limit is aligned with the government’s target of achieving 500 GW of non-fossil fuel-based energy capacity. By enabling greater participation in large-scale projects, the decision aims to accelerate the development of transmission infrastructure critical for integrating renewable energy into the national grid.
The approval will also broaden competition in Tariff-Based Competitive Bidding (TBCB) for selection of developers for key transmission projects. Increased competition is expected to ensure better price discovery, ultimately leading to affordable and clean energy for consumers, according to an official release.
Powergrid, a ‘Maharatna’ CPSE, plays a central role in India’s power transmission network and is instrumental in strengthening grid reliability and supporting the country’s energy transition goals.
