POWERGRID has received approval for an enhanced delegation of powers from the Cabinet Committee on Economic Affairs, effective February 24, 2026. This crucial enhancement raises the permissible equity investment limit for any subsidiary from the current Rs. 5,000 Crore to Rs. 7,500 Crore. The existing cap of 15% of the company’s net worth remains unchanged, empowering POWERGRID to expand core business investments, particularly in renewable energy evacuation infrastructure.
Approval for Enhanced Investment Powers Granted
The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, officially approved an enhanced delegation of powers for POWERGRID on February 24, 2026. This decision aligns with existing guidelines applicable to ‘Maharatna’ Central Public Sector Enterprises (CPSEs) originally issued by the Department of Public Enterprises (DPE) on February 4, 2010.
Key Financial Threshold Increase
The primary impact of this approval is a significant upward revision of the permissible equity investment threshold. The limit is increased from the existing Rs. 5,000 Crore per subsidiary to a new ceiling of Rs. 7,500 Crore per subsidiary. Importantly, the company retains the existing safeguard, keeping the aggregate investment cap at 15% of the Company’s net worth.
Strategic Implications for Expansion
As the largest transmission service provider, this enhanced delegation is set to enable POWERGRID to expand its core business footprint significantly. Specifically, it will support the acceleration of investment required for the evacuation capacity of renewable energy, helping achieve national targets of 500 GW from non-fossil-based sources. Furthermore, it broadens POWERGRID’s participation scope in capital-intensive projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks.
Impact on Competitive Bidding
This increased financial agility is also expected to enhance competition within the Tariff Based Competitive Bidding (TBCB) process for selecting bidders for critical transmission projects. Improved competition is anticipated to lead to better price discovery, ultimately ensuring the availability of affordable and clean energy for consumers.
Source: BSE
