CCEA Raises POWERGRID’s Equity Investment Limit To ₹7,500 Crore Per Subsidiary

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the financial powers of Power Grid Corporation of India Limited (POWERGRID). The decision was taken on February 24, 2026, and allows the company to raise its equity investment limit in its subsidiaries.

Under the new approval, POWERGRID can now invest up to ₹7,500 crore in each subsidiary. Earlier, the limit was ₹5,000 crore per subsidiary. However, the overall cap on such investments remains unchanged. The total investment in subsidiaries cannot exceed 15 percent of the company’s total net worth. The decision follows the guidelines issued by the Department of Public Enterprises (DPE) on February 4, 2010, regarding the delegation of powers to Maharatna Central Public Sector Enterprises.

POWERGRID is India’s largest electricity transmission company and plays a key role in strengthening the national grid. The increase in financial powers is expected to help the company expand its core transmission business and support the evacuation of renewable energy from generation sites to demand centres. This step is important as India works towards its target of achieving 500 GW of non-fossil fuel-based power capacity in the coming years.

With higher investment limits, POWERGRID will be in a better position to bid for large and capital-intensive transmission projects. These include advanced technologies such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) systems. The government believes that greater financial flexibility will also enable the company to compete more actively in Tariff-Based Competitive Bidding (TBCB) projects.

Officials expect that increased participation in competitive bidding will improve price discovery and promote healthy competition in the sector. This could help bring down transmission costs and support the supply of affordable and clean electricity to consumers across the country.

The development was officially disclosed to the National Stock Exchange of India and BSE Limited by Satyaprakash Dash, Company Secretary and Compliance Officer of POWERGRID, in compliance with Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements Regulations, 2015.