The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved enhanced delegation of powers to Power Grid Corporation of India Limited (POWERGRID) under the existing guidelines dated February 4, 2010, issued by the Department of Public Enterprises (DPE) for Maharatna Central Public Sector Enterprises (CPSEs).
With this approval, the permissible equity investment limit of POWERGRID has been increased from the current threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary. However, the overall cap of 15 percent of the company’s net worth remains unchanged.
Boost to Renewable Energy Evacuation
The decision is expected to strengthen POWERGRID’s ability to expand investments in its core transmission business. As the country’s largest and most experienced transmission service provider, the company plays a key role in supporting the evacuation of renewable energy across regions.
The move fits with India’s goal of getting 500 GW of power capacity from sources that don’t use fossil fuels. The approval will help build important transmission infrastructure that will allow large amounts of renewable energy to be connected to the national grid by allowing more money to be invested.
Following the approval, POWERGRID can now participate in bids for capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks.
The enhanced delegation will also allow wider participation in Tariff Based Competitive Bidding (TBCB) processes for critical transmission projects. This is expected to promote better price discovery and increase competition among bidders.
In general, the goal of the decision is to improve India’s transmission infrastructure and make sure that all consumers in the country have access to clean, cheap energy.
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