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Cabinet Clears Higher Equity Investment Cap for POWERGRID Subsidiaries at INR 7,500 Crore

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the equity investment limit for subsidiaries of Power Grid Corporation of India (POWERGRID). The revised decision raises the permissible investment ceiling from INR 5,000 crore to INR 7,500 crore per subsidiary.

While the per-subsidiary investment cap has been enhanced, the overall restriction of 15 percent of the company’s net worth remains unchanged. The move comes under the existing delegation of powers granted to Maharatna Central Public Sector Enterprises (CPSEs).

According to the Ministry of Power, the higher investment threshold will allow POWERGRID to scale up its core transmission operations and strengthen renewable energy evacuation infrastructure. The measure is expected to support India’s broader objective of achieving 500 GW of non-fossil fuel-based power capacity.

The approval also enables the company to compete for large-scale, capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) systems. In addition, greater participation in Tariff-Based Competitive Bidding (TBCB) processes is anticipated to enhance competition, improve price discovery, and facilitate the delivery of reliable and affordable clean energy to consumers.