Union Cabinet approves enhanced investment powers for Powergrid
NEW DELHI: The government on Tuesday has approved enhanced delegation of powers to transmission service provider Power Grid Corporation of India Limited (Powergrid), allowing it to increase equity investment up to ₹7,500 crore per subsidiary.
According to Information and Broadcasting Minister Ashwini Vaishnaw, the approval enhances the permissible equity investment limit of POWERGRID 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 government believes the move will strengthen the company's ability to participate in high-value transmission projects and accelerate India’s power infrastructure expansion.
Under existing Department of Public Enterprises (DPE) guidelines, Maharatna CPSE boards are permitted to approve equity investments up to 15% of their net worth or ₹5,000 crore per project. While Powergrid's net worth stands at ₹92,216 crore—allowing a theoretical investment ceiling of ₹13,832 crore under the 15% rule—the ₹5,000 crore per-project cap had emerged as a limiting factor.
Following the approval, Powergrid will be able to expand investment in its core business and support the evacuation of renewable energy, helping the country achieve its target of 500 GW from non-fossil-based sources.
The minister said Powergrid can now participate in bids for capital-intensive transmission projects, such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.
Additionally, the decision is expected to broaden competition in Tariff-Based Competitive Bidding (TBCB) for critical transmission projects, ensuring better price discovery and ultimately leading to the availability of affordable and clean energy for consumers.
According to the government, India's transmission sector is projected to require investments of nearly ₹9.2 lakh crore by 2032, driven by rising electricity demand, renewable energy integration, and grid modernization efforts.