New Delhi

The Union Cabinet on Tuesday approved a proposal to raise the equity investment ceiling for Power Grid Corporation of India Ltd from Rs 5,000 crore to Rs 7,500 crore per subsidiary, a move aimed at enabling the state-owned firm to participate in large, capital-intensive power transmission projects.

The decision was taken by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, during its meeting held at the Prime Minister’s new office complex, Seva Teerth.

Briefing the media after the meeting, Information and Broadcasting Minister Ashwini Vaishnaw said the enhanced delegation of powers to Powergrid was approved in line with the Department of Public Enterprises’ guidelines for Maharatna central public sector enterprises.

Under the revised framework, Powergrid will be permitted to invest up to Rs 7,500 crore as equity in each subsidiary, while the overall cap of 15 per cent of the company’s net worth will continue to apply, Vaishnaw said.

The higher investment limit is expected to strengthen Powergrid’s ability to expand its core transmission business, particularly to facilitate the evacuation of renewable energy. The move will support India’s goal of achieving 500 gigawatts of installed capacity from non-fossil fuel sources.

With the revised threshold, the CPSE will be able to bid for complex and high-value transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) systems.

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Officials said the decision will also intensify competition under the Tariff-Based Competitive Bidding (TBCB) mechanism for critical transmission infrastructure. This is expected to improve price discovery and, in the long run, help ensure the supply of affordable and cleaner electricity to consumers across the country.