Cabinet Raises POWERGRID Equity Investment Cap to ₹7500 Crore per Subsidiary
The enhanced limit will enable POWERGRID to expand investments in its core transmission business and strengthen infrastructure required for evacuation of renewable energy, in line with India’s target of achieving 500 GW of installed capacity from non-fossil fuel sources.
Move enables larger participation in renewable evacuation, UHVAC and HVDC transmission projects
New Delhi: The Cabinet Committee on Economic Affairs has approved enhanced delegation of powers to POWERGRID, raising its permissible equity investment limit per subsidiary from ₹5,000 crore to ₹7,500 crore.
The approval, granted under the department of public enterprises’ guidelines dated February 4, 2010 for Maharatna CPSEs, retains the overall cap of 15% of the company’s net worth per subsidiary.
The enhanced limit will enable POWERGRID to expand investments in its core transmission business and strengthen infrastructure required for evacuation of renewable energy, in line with India’s target of achieving 500 GW of installed capacity from non-fossil fuel sources.
The higher threshold will allow the company to participate more effectively in capital-intensive transmission projects, including ultra high voltage alternating current (UHVAC) and high voltage direct current (HVDC) networks.
Officials said the move will also widen competition under tariff based competitive bidding (TBCB) for critical transmission projects. Greater participation is expected to improve price discovery and support the availability of affordable and clean energy for consumers.
POWERGRID is India’s largest transmission service provider and plays a central role in integrating renewable energy into the national grid.
