The Cabinet Committee on Economic Affairs (CCEA) has approved an increase in the equity investment limit for Power Grid Corporation of India Limited (POWERGRID), allowing the Maharatna public sector company to invest up to ₹7,500 crore per subsidiary, up from the earlier threshold of ₹5,000 crore.
The revised delegation retains the overall cap of 15 per cent of the company’s net worth, but provides greater financial flexibility for POWERGRID to expand investments in large-scale transmission infrastructure projects.
The move is expected to strengthen the company’s ability to support evacuation of renewable energy and help India achieve its target of 500 GW of non-fossil fuel power capacity. Transmission infrastructure is critical for integrating renewable generation, particularly from remote solar and wind clusters, into the national grid.
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With the higher investment ceiling, POWERGRID will be able to participate more effectively in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks, which are essential for long-distance bulk power transfer.
The decision is also expected to enhance competition in tariff-based competitive bidding for major transmission projects, potentially improving price discovery and enabling more efficient development of critical grid infrastructure.
POWERGRID is India’s largest power transmission utility and plays a central role in expanding the national grid to support rising electricity demand and the country’s ongoing energy transition.
