The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Narendra Modi, has recently approved enhanced delegation to POWERGRID under the extant guidelines dated February 4, 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 Rs.5,000 crore per subsidiary to Rs.7,500 crore per subsidiary, while retaining the existing cap of 15% of the company’s net worth.
Power Grid Corporation of India Limited (PGCIL) is a Maharatna CPSU under the Ministry of Power, responsible for planning, executing, and operating India’s vast inter-state power transmission network.
The approval will enable PGCIL, the largest and most experienced transmission service provider in the country, to expand its investment in its core business and support the evacuation of RE 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. This ensures better price discovery, and ultimately lead to the availability of affordable and clean energy for consumers.
