New Delhi: The Cabinet Committee on Economic Affairs approved an increase in the POWERGRID equity limit from ₹5,000 crore to ₹7,500 crore per subsidiary to strengthen transmission investments.
Prime Minister Narendra Modi chaired the meeting that cleared enhanced delegation under the Department of Public Enterprises guidelines dated February 4, 2010. The decision applies to Maharatna CPSEs and retains the existing cap of 15% of the company’s net worth.
Officials said the revised POWERGRID equity limit will allow the company to expand investments in its core transmission business. As a result, it can support evacuation of renewable energy and help achieve the national target of 500 GW from non-fossil fuel sources.
The approval enables the company to participate in bids for capital-intensive transmission projects. These include Ultra High Voltage Alternating Current and High Voltage Direct Current networks.
POWERGRID equity limit to boost transmission capacity
With the enhanced threshold, the company can compete more effectively in Tariff Based Competitive Bidding for critical transmission projects. Therefore, broader participation is expected to improve competition and price discovery.
Officials said increased competition could reduce overall transmission costs. Consequently, consumers may benefit from more affordable and cleaner energy supply.
The company remains the largest and most experienced transmission service provider in the country. By strengthening its financial flexibility, the government aims to accelerate grid expansion and renewable integration.
The decision aligns with national energy transition goals and supports infrastructure development for long-term energy security.
