Power Grid’s equity investment limit enhanced

Power Grid Receives Enhanced Delegation from Union Cabinet

The Union Cabinet has approved a significant enhancement of the equity investment limit for Power Grid, allowing it to raise its threshold from Rs 5,000 crore per subsidiary to Rs 7,500 crore per subsidiary.

• The approval retains the existing cap of 15% of the company's net worth.
• This move will enable Power Grid to expand its investment in its core business and support the evacuation of renewable energy capacity, helping the country achieve the target of 500 GW from non-fossil-based sources.

With the enhanced delegation, Power Grid can now participate in bids for capital-intensive transmission projects, including:

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

This will broaden competition in the Tariff Based Competitive Bidding (TBCB) for the selection of bidders for critical transmission projects, leading to better price discovery and the availability of affordable and clean energy for consumers.

• Increased investment in core business
• Support for renewable energy capacity evacuation
• Better price discovery through TBCB process
• Availability of affordable and clean energy for consumers