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Powergrid’s equity investment limit hiked to ₹7,500/subsidiary
The Cabinet approved raising POWERGRID's equity limit to Rs. 7,500 crore, enhancing its investment in renewable energy and interstate power transmission.
New Delhi
The Cabinet Committee on Economic Affairs (CCEA, chaired by Prime Minister Narendra Modi, on Tuesday approved the increase of the equity investment limit of POWERGRID to Rs. 7,500 crore per subsidiary from the current threshold of Rs. 5,000 crore per subsidiary.
“The approval will enable POWERGRID, the largest and most experienced transmission service provider in the country, to expand its investment in its core business and support the evacuation of renewable energy capacity, helping achieve the target of 500 GW from non-fossil-based sources,” said a CCEA press statement.
The enhanced delegation to POWERGRID follows the guidelines of the Department of Public Enterprises (DPE) from February 2010 on the delegation of powers applicable to Maharatna central public sector enterprises (CPSEs).
POWERGRID, which handles nearly 90% of India’s interstate power transmission, is set to play a key role in the National Electricity Plan, which aims to fulfil a peak demand of 458 GW by 2032.
Following this move, POWERGRID has gained the ability to participate in bids for capital-intensive transmission projects such as ultra-high voltage alternating current (UHVAC) and high voltage direct current (HVDC) transmission networks. It will lead to higher competition among bidders for critical transmission projects in tariff-based competitive bidding (TBCB). “This ensures better price discovery, and ultimately lead to the availability of affordable and clean energy for consumers,” the statement said.
