New Delhi: The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an enhancement in the delegation of powers to POWERGRID, India’s leading transmission service provider. This decision allows the company to increase its equity investment threshold per subsidiary, facilitating its expansion in transmission infrastructure and renewable energy support.
Increased Equity Investment Limit for POWERGRID
Under the approval, POWERGRID can now increase its equity investment per subsidiary from the earlier limit of ₹5,000 crore to ₹7,500 crore, while maintaining the existing cap of 15% of the company’s net worth. The decision follows the extant guidelines dated 4th February 2010 from the Department of Public Enterprises (DPE) regarding powers delegated to Maharatna CPSEs.
This move empowers POWERGRID to make larger investments in strategic projects and subsidiaries without requiring separate government approvals, streamlining decision-making for critical transmission projects.
Supporting Renewable Energy and Transmission Expansion
The enhanced powers will enable POWERGRID to support India’s ambitious renewable energy targets, including the goal of 500 GW from non-fossil-based sources. By investing more in its core business, POWERGRID can ensure efficient evacuation and transmission of electricity generated from renewable sources such as solar and wind.
The company is now better positioned to participate in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks. These upgrades will strengthen the national grid and support the integration of renewable energy into the mainstream power supply.
Promoting Competition and Affordable Energy
The approval also encourages broader participation in Tariff Based Competitive Bidding (TBCB) for critical transmission projects. By increasing competition among bidders, this process ensures better price discovery, ultimately helping deliver affordable and clean energy to consumers.
About POWERGRID
POWERGRID, a Maharatna CPSE, is India’s largest transmission service provider, with extensive experience in designing, implementing, and operating high-voltage transmission networks across the country. The company plays a pivotal role in ensuring grid stability, facilitating renewable energy integration, and supporting India’s transition to a clean energy future.
