THEBUSINESSBYTES BUREAU
NEW DELHI, FEBRUARY 24, 2026
In a significant boost to India’s power transmission capacity and clean
energy ambitions, the Cabinet Committee on Economic Affairs chaired by Prime
Minister Narendra Modi on Tuesday approved enhanced delegation of powers to
Power Grid Corporation of India Limited, raising its equity investment ceiling
per subsidiary from ₹5,000 crore to ₹7,500 crore while retaining the overall cap of 15 per cent of net worth.
The decision, granted under the existing Department of Public Enterprises guidelines for Maharatna CPSEs, is expected to strengthen POWERGRID’s ability to undertake large-scale transmission projects and accelerate the evacuation of renewable energy across the country. As India moves towards its ambitious target of achieving 500 GW of non-fossil fuel capacity, the enhanced financial flexibility will allow the state-run transmission major to expand investments in its core infrastructure and support the growing green energy pipeline.
With the higher investment threshold, POWERGRID will be better positioned to participate in capital-intensive projects such as Ultra High Voltage Alternating Current and High Voltage Direct Current transmission corridors, which are critical for long-distance bulk power transfer and grid stability. The move will also deepen competition in tariff-based competitive bidding for key transmission assets, leading to improved price discovery and more efficient project execution.
