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Cabinet Boosts POWERGRID Investment to ₹7,500 Crore
24 Feb
Summary
- Investment limit for POWERGRID subsidiaries raised to ₹7,500 crore.
- Enhanced investment supports renewable energy transmission expansion.
- Move aims to increase competition in critical transmission projects.
The Cabinet Committee on Economic Affairs has approved an increased equity investment limit for POWERGRID's subsidiaries. The permissible investment per subsidiary has been raised from ₹5,000 crore to ₹7,500 crore, maintaining a cap of 15% of the company's net worth. This decision is aligned with the existing guidelines for Maharatna Central Public Sector Enterprises (CPSEs).
This strategic enhancement aims to bolster POWERGRID's capacity in critical areas. It will facilitate the expansion of its core transmission business, including the crucial evacuation of renewable energy. The move is vital for achieving India's ambitious target of 500 GW from non-fossil fuel sources.
Furthermore, the increased investment limit will enable POWERGRID to actively participate in bids for capital-intensive transmission projects, such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks. It is also anticipated to intensify competition within the Tariff Based Competitive Bidding (TBCB) process, thereby contributing to better price discovery and ensuring the availability of affordable clean energy for consumers.
