The Cabinet Committee on Economic Affairs, chaired by Narendra Modi, has approved enhanced delegation of powers to Power Grid Corporation of India Limited under the existing guidelines dated February 4, 2010, issued by the Department of Public Enterprises (DPE) for Maharatna CPSEs.
With this approval, the permissible equity investment limit of the company has been increased from the current threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the existing cap of 15% of the company’s net worth.
The decision will enable POWERGRID, the country’s largest and most experienced transmission service provider, to expand investments in its core transmission business and support the evacuation of renewable energy capacity. This move is expected to contribute to achieving the national target of 500 GW of power capacity from non-fossil-based sources.
Following the enhanced delegation, POWERGRID will be able to participate in bids for capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks.
The development is also expected to broaden competition in the Tariff-Based Competitive Bidding (TBCB) process for selecting bidders for critical transmission projects. This will help ensure better price discovery and ultimately support the availability of affordable and clean energy for consumers.
