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Govt Approves POWERGRID’s Subsidiary Equity Investment Limit Hike to INR 7,500 Crore

The Cabinet Committee on Economic Affairs has approved enhanced investment delegation for Power Grid Corporation of India, increasing the subsidiary equity investment limit from INR 5,000 crore to INR 7,500 crore, to support renewable evacuation and transmission expansion.

February 25, 2026. By Mrinmoy Dey

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved enhanced delegation to Power Grid Corporation of India (POWERGRID) under the extant guidelines of power to Maharatna CPSEs for making investment in its subsidiaries.

The approval enhances the permissible equity investment limit of POWERGRID from the current threshold of INR 5,000 crore per subsidiary to INR 7,500 crore per subsidiary, while retaining the existing cap of 15 percent of the company's net worth.

The approval will enable POWERGRID to expand its investment in its core business and support the evacuation of renewable energy capacity, helping achieve the target of 500 GW from non-fossil-based sources, stated the Ministry of Power.

It further added that POWERGRID can now participate in the bids for capital-intensive transmission projects, such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks. Additionally, it will broaden competition in the Tariff-Based Competitive Bidding (TBCB) for the selection of bidders for critical transmission projects. This ensures better price discovery, and ultimately will lead to the availability of affordable and clean energy for consumers, it said.

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Policies & Regulations

Cabinet Committee on Economic Affairs

Power Grid Corporation of India

Powergrid

Enhanced delegation to CPSEs

Renewable energy evacuation