The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved a proposal to enhance the equity investment limit of Power Grid Corporation of India Limited (Powergrid) from \u20b95,000 crore to \u20b97,500 crore per subsidiary. The decision was taken at the committee\u2019s first meeting held at the Prime Minister\u2019s new office, Seva Teerth.<\/p>\n
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the approval grants enhanced delegation of powers to Powergrid under the Department of Public Enterprises (DPE) guidelines dated February 4, 2010, applicable to \u2018Maharatna\u2019 Central Public Sector Enterprises (CPSEs).<\/p>\n
\u201cThe CCEA has approved enhanced delegation to Powergrid. The permissible equity investment limit has been increased from the existing threshold of \u20b95,000 crore per subsidiary to \u20b97,500 crore per subsidiary, while retaining the existing cap of 15 per cent of the company\u2019s net worth,\u201d Vaishnaw said.<\/p>\n
The move is expected to strengthen Powergrid\u2019s ability to bid for capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks. As the country\u2019s largest transmission service provider, the CPSE will now be better positioned to expand investments in its core business and facilitate evacuation of renewable energy.<\/p>\n
The enhanced investment limit is aligned with the government\u2019s target of achieving 500 GW of non-fossil fuel-based energy capacity. By enabling greater participation in large-scale projects, the decision aims to accelerate the development of transmission infrastructure critical for integrating renewable energy into the national grid.<\/p>\n
The approval will also broaden competition in Tariff-Based Competitive Bidding (TBCB) for selection of developers for key transmission projects. Increased competition is expected to ensure better price discovery, ultimately leading to affordable and clean energy for consumers, according to an official release.<\/p>\n
Powergrid, a \u2018Maharatna\u2019 CPSE, plays a central role in India\u2019s power transmission network and is instrumental in strengthening grid reliability and supporting the country\u2019s energy transition goals.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved a proposal to enhance the equity investment limit of Power Grid Corporation of India Limited (Powergrid) from \u20b95,000 crore to \u20b97,500 crore per subsidiary. The decision was taken at the committee\u2019s first meeting held at the Prime Minister\u2019s new […]<\/p>\n","protected":false},"author":1,"featured_media":4360,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":{"0":"post-4361","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-national"},"yoast_head":"\n