Cabinet Approves Enhanced Investment for POWERGRID: Investment Limit to ₹7,500 Crore

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Shri Narendra Modi, has approved enhanced delegation of powers to POWERGRID under the existing Department of Public Enterprises (DPE) guidelines dated 4 February 2010, applicable to Maharatna CPSEs.

Under the revised approval, the permissible equity investment limit for POWERGRID has been increased from ₹5,000 crore to ₹7,500 crore per subsidiary. The overall cap of 15% of the company’s net worth remains unchanged.

Boost to Renewable Energy and Transmission Capacity

The enhanced delegation will empower POWERGRID, the country’s largest and most experienced transmission service provider, to scale up investments in its core transmission business. This move will significantly support the evacuation of renewable energy and contribute to achieving India’s target of 500 GW of non-fossil fuel-based energy capacity.

Enabling Participation in Capital-Intensive Projects

With higher investment limits, POWERGRID will be better positioned to participate in bids for large-scale and capital-intensive transmission projects, including:

• Ultra High Voltage Alternating Current (UHVAC) networks
• High Voltage Direct Current (HVDC) transmission systems

Also Read: Union Cabinet Approves Ahmedabad Metro Extension from GIFT City to Shahpur

The decision is also expected to enhance competition under the Tariff-Based Competitive Bidding (TBCB) framework for critical transmission projects. Greater competition will facilitate improved price discovery, ensure efficient project execution and ultimately deliver affordable, reliable, and clean energy to consumers.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.