Follow India Renewable Energy News on WhatsApp for exclusive updates on clean energy news and insights

Powergrid’s Equity Investment Limit Raised to Rs7,500 Crore to Boost Transmission Expansion

In a significant policy step to strengthen India’s transmission infrastructure for the clean energy transition, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in the permissible equity investment limit for Power Grid Corporation of India Limited (Powergrid). The limit per subsidiary has been raised from Rs5,000 crore to Rs7,500 crore, while the existing 15?p of the company’s net worth remains unchanged.

The move comes amid a projected surge in transmission investment requirements, estimated at Rs9.2 lakh crore by 2032, to accommodate India’s expanding electricity demand and renewable energy integration. Under current Department of Public Enterprises (DPE) guidelines for Maharatna CPSEs, company boards can approve equity investments up to 15% of net worth or Rs5,000 crore per project, whichever is lower. With Powergrid’s net worth at Rs92,216 crore, the 15?iling equates to Rs13,832 crore, making the previous Rs5,000-crore project cap a limiting factor for large-scale investments.

The CCEA statement highlighted that the enhanced delegation will allow Powergrid, India’s largest and most experienced transmission provider, to expand investment in its core business and support the evacuation of renewable energy capacity. Officials noted that the earlier limit had increasingly constrained the company’s participation in high-value Tariff-Based Competitive Bidding (TBCB) projects, particularly as project sizes grew in line with clean energy goals.

The revised equity headroom is expected to facilitate large capital-intensive initiatives under the National Electricity Plan (2023–32), including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks, as well as synchronous condensers. The government also stated that the move will broaden competition in TBCB bidding, improve price discovery, and ultimately help deliver reliable, affordable, and clean energy to consumers.

Transmission expansion, the CCEA noted, is central to integrating renewable energy at scale and ensuring the stability and resilience of India’s future power grid.