New Delhi, Feb 24: The Cabinet Committee on Economic Affairs (CCEA), chaired by Narendra Modi, has approved enhanced financial delegation to Power Grid Corporation of India Limited (POWERGRID), raising the permissible equity investment limit from ₹5,000 crore to ₹7,500 crore per subsidiary. The existing cap of 15 per cent of the company’s net worth remains unchanged.
The approval has been granted under the Department of Public Enterprises (DPE) guidelines dated February 4, 2010, applicable to Maharatna CPSEs, providing greater financial flexibility to support capital-intensive transmission projects.
Boost to Renewable Energy Integration
The enhanced delegation strengthens POWERGRID’s ability to scale investments in its core transmission business, particularly in facilitating evacuation of renewable energy. The move aligns with India’s strategic objective of achieving 500 GW of non-fossil fuel-based energy capacity.
With the revised investment threshold, POWERGRID will be better positioned to participate in large-scale projects such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks. The decision is also expected to intensify competition in Tariff-Based Competitive Bidding (TBCB) processes for critical transmission assets, supporting improved price discovery and cost efficiency.
