The Cabinet Committee on Economic Affairs (CCEA) has approved enhanced delegation of powers to Power Grid Corporation of India Limited (POWERGRID) under the department of public enterprises guidelines for maharatna central public sector enterprises.
The approval increases POWERGRID’s permissible equity investment threshold from Rs 50 billion per subsidiary to Rs 75 billion per subsidiary while retaining the overall cap of 15 per cent of the company’s net worth. The enhanced limit is intended to enable POWERGRID to scale up investments in its core transmission business and support evacuation of renewable energy as India targets 500 GW of non-fossil capacity. The approval will also allow POWERGRID to participate in capital-intensive transmission bids, including ultra high voltage alternating current and high voltage direct current networks, and is expected to broaden competition under tariff based competitive bidding for critical transmission projects, supporting price discovery and access to affordable clean power.