The Cabinet approved raising POWERGRID's equity limit to Rs. 7,500 crore, enhancing its investment in renewable energy and interstate power transmission.| India News

Powergrid’s equity investment limit hiked to ₹7,500/subsidiary

POWERGRID Expansion Gets Nod from Cabinet Committee on Economic Affairs

Chairman of the Cabinet Committee on Economic Affairs (CCEA), Prime Minister Narendra Modi, has given the green light to increase the equity investment limit of POWERGRID to Rs. 7,500 crore per subsidiary.

Key Highlights:

POWERGRID's equity investment limit increased to Rs. 7,500 crore per subsidiary from Rs. 5,000 crore.
Enhanced delegation to POWERGRID will support the evacuation of renewable energy capacity.
POWERGRID to play a key role in the National Electricity Plan, aiming to meet a peak demand of 458 GW by 2032.

According to a CCEA press statement, the increased delegation to POWERGRID will enable the company to expand its investment in its core business, supporting the target of 500 GW from non-fossil-based sources.

POWERGRID, which handles nearly 90% of India's interstate power transmission, will now be able to participate in bids for capital-intensive transmission projects such as ultra-high voltage alternating current (UHVAC) and high voltage direct current (HVDC) transmission networks.

This move is expected to lead to higher competition among bidders for critical transmission projects in tariff-based competitive bidding (TBCB), resulting in better price discovery and ultimately, more affordable and clean energy for consumers.

POWERGRID's enhanced capabilities will be in line with the guidelines of the Department of Public Enterprises (DPE) from February 2010, which outlines the delegation of powers applicable to Maharatna central public sector enterprises (CPSEs).

With this approval, POWERGRID is poised to play a crucial role in the National Electricity Plan and contribute to the country's renewable energy goals.

Benefits of the Enhanced Delegation: