Govt Raises Equity Investment Limit For Power Grid Subsidiary To Rs 7,500 Crore

2026-02-24 02:05:22

(MENAFN- KNN India) New Delhi, Feb 24 (KNN) The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi has approved enhanced delegation of powers to Power Grid Corporation of India Ltd (POWERGRID) under existing guidelines for Maharatna Central Public Sector Enterprises (CPSEs).

The decision raises the permissible equity investment limit per subsidiary from Rs 5,000 crore to Rs 7,500 crore, while retaining the overall cap of 15 per cent of the company's net worth, in line with Department of Public Enterprises guidelines dated 4 February 2010.

The enhanced delegation is expected to strengthen POWERGRID's capacity to invest in its core transmission business and support evacuation of renewable energy, contributing to India's target of achieving 500 GW of installed capacity from non-fossil fuel sources.

With the revised limit, POWERGRID will be better positioned to participate in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.

The move is also intended to widen competition in Tariff-Based Competitive Bidding (TBCB) for major transmission projects.

Officials stated that increased participation in competitive bidding is likely to improve price discovery and facilitate the delivery of affordable and clean electricity to consumers, while strengthening the country's transmission infrastructure.

(KNN Bureau)

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