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 Limited (POWERGRID) under the existing Department of Public Enterprises (DPE) guidelines dated February 4, 2010, applicable to Maharatna Central Public Sector Enterprises (CPSEs).
Under the revised approval, POWERGRID’s permissible equity investment limit has been increased from the current Rs 5,000 crore per subsidiary to Rs 7,500 crore per subsidiary. The overall cap remains unchanged at 15% of the company’s net worth.
The decision is expected to strengthen POWERGRID’s capacity to expand investments in its core transmission business and facilitate the evacuation of renewable energy, supporting India’s target of achieving 500 GW of non-fossil fuel-based power capacity.
With the enhanced financial flexibility, POWERGRID will be able to participate in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks. The move will also enable broader competition in Tariff Based Competitive Bidding (TBCB) processes for critical transmission projects, promoting better price discovery and contributing to the delivery of affordable and clean energy to consumers.
POWERGRID is the country’s largest and most experienced transmission service provider, playing a central role in strengthening India’s national grid and renewable energy integration.
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