Cabinet Approves Enhanced Delegation to POWERGRID, Raises Equity Investment Limit to ₹7,500 Crore per Subsidiary
The approval will also enhance competition under the Tariff Based Competitive Bidding mechanism for critical transmission projects, leading to improved price discovery
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 guidelines of the Department of Public Enterprises (DPE) applicable to Maharatna Central Public Sector Undertakings (CPSUs).
As per the decision, the permissible equity investment limit for POWERGRID has been increased from the existing ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the overall cap of 15% of the company’s net worth. The move comes under the extant DPE guidelines on delegation of powers to Maharatna CPSEs issued on February 4, 2010.
Boost to Renewable Energy Infrastructure
The enhanced delegation will enable POWERGRID — India’s largest transmission service provider — to significantly scale up investments in its core transmission business. The decision is expected to strengthen infrastructure required for evacuation of renewable energy and support India’s ambitious target of achieving 500 GW of non-fossil fuel-based power capacity.
Participation in Capital-Intensive Projects
With the revised investment threshold, POWERGRID will now be able to participate more effectively in large and capital-intensive transmission projects, including:
- Ultra High Voltage Alternating Current (UHVAC) networks
- High Voltage Direct Current (HVDC) transmission systems
The approval will also enhance competition under the Tariff Based Competitive Bidding (TBCB) mechanism for critical transmission projects, leading to improved price discovery.
Benefits for Consumers
Greater participation by POWERGRID in transmission bidding is expected to accelerate grid expansion, improve efficiency, and facilitate the delivery of affordable and clean electricity to consumers across the country.
The decision is seen as a strategic step toward strengthening India’s transmission backbone while supporting the country’s clean energy transition and long-term energy security goals.
