The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved enhanced delegation to POWERGRID under the existing guidelines dated 4th February, 2010 of the Department of Public Enterprises (DPE) on delegation of powers applicable to Maharatna CPSEs.
The approval enhances the permissible equity investment limit of POWERGRID from the current threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the existing cap of 15% of the company’s net worth.
The approval enhances the permissible equity investment limit of POWERGRID from the current threshold of ₹5,000 crore per subsidiary to ₹7,500 crore per subsidiary, while retaining the existing cap of 15% of the company’s net worth.
The approval will enable POWERGRID, the oldest and largest 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.
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 selection of bidders for critical transmission projects. The move is aimed at ensuring better price discovery for availability of affordable and clean energy for consumers.
