Union Cabinet Raises Equity Limit for Powergrid to ₹7,500 Crore Per Subsidiary

The Cabinet Committee on Economic Affair (CCEA) has raised the equity limit of each subsidiary of Powergrid from Rs 5,000 crore to Rs 7,000 crore under the extant Maharatna CPSE guidelines.

The Union Minister for Transport and Roadways, Nitin Gadkari, noted that this move would allow the Power Grid Corporation of India Ltd. to participate more effectively in "capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks."

With this enhanced threshold, Powergrid will be able to participate more effectively in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.

The decision is also expected to enhance competition under the Tariff Based Competitive Bidding (TBCB) framework, enabling faster development of critical transmission infrastructure and supporting India’s growing power demand and renewable energy integration.

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In his latest tweet, Gadkari penned, "With this enhanced threshold, POWERGRID will be able to participate more effectively in capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks."

"The decision will also strengthen competition under the Tariff Based Competitive Bidding (TBCB) framework, enabling faster development of critical transmission infrastructure and supporting India’s growing power demand and renewable energy integration," he said.

The approval will enable Powergrid, the largest and most experienced transmission service provider in the country, 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, according to CCEA.