Cabinet Increases POWERGRID's Equity Investment Limit to Rs 7,500 Crore per Subsidiary
Synopsis
The Cabinet Committee on Economic Affairs has approved a significant increase in the equity investment limit for POWERGRID, allowing up to Rs 7,500 crore per subsidiary. This decision aims to enhance investments in renewable energy and improve competition in the transmission sector.
Key Takeaways
Cabinet approval increases POWERGRID's investment threshold .
New limit set at Rs 7,500 crore per subsidiary .
Supports renewable energy capacity expansion .
Enhances competition in transmission sector .
Robust financial performance reported for Q3 .
New Delhi, Feb 24 (NationPress) The Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, has officially increased the equity investment cap for Power Grid Corporation of India Limited (POWERGRID). The limit rises from the previous Rs 5,000 crore per subsidiary to a new threshold of Rs 7,500 crore, while maintaining the existing limit of 15% of the company's net worth.
This decision falls under the guidelines established on February 4, 2010, by the Department of Public Enterprises (DPE), which govern the delegation of powers among Maharatna Central Public Sector Enterprises (CPSEs).
As stated in an official release, this enhanced approval will empower POWERGRID—recognized as the largest and most seasoned transmission service provider in India—to boost its investments in essential operations and facilitate the integration of renewable energy sources, aiding the achievement of the ambitious goal of 500 GW from non-fossil sources.
The announcement further indicates that POWERGRID will now be eligible to compete for significant capital-intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.
Moreover, this development will increase competitiveness in the Tariff-Based Competitive Bidding (TBCB) process for selecting bidders for crucial transmission initiatives.
According to the CCEA, this will lead to improved price discovery, ultimately resulting in cleaner and more affordable energy for consumers.
Recently, POWERGRID, the central transmission utility, revealed its unaudited financial results for the third quarter of the fiscal year. The public enterprise reported a notable increase in profitability.
Standalone profit after tax (PAT) reached Rs 4,160.17 crore, marking a 6.8% rise from Rs 3,894.09 crore in Q3 FY25. Standalone operational revenue stood at Rs 11,005.28 crore, up from Rs 10,120.72 crore year-on-year.
The company's Board of Directors has approved several key proposals, including a second interim dividend of Rs 3.25 per equity share (32.5% on the face value of Rs 10) for FY 2025-26, which is scheduled for distribution on February 27, 2026.
Point of View
Particularly in the realm of renewable energy. By allowing POWERGRID to increase its investment capacity, the government is facilitating a more robust and competitive energy market, ultimately benefiting consumers and supporting national sustainability goals.
NationPress
12 May 2026
Frequently Asked Questions
What is the new equity investment limit for POWERGRID?
The new equity investment limit for POWERGRID has been increased to Rs 7,500 crore per subsidiary.
Who chaired the Cabinet meeting that approved this decision?
The meeting was chaired by Prime Minister Narendra Modi.
What will this increase in investment limit enable POWERGRID to do?
This increase will enable POWERGRID to expand its investments in core operations and support the evacuation of renewable energy capacity.
When will the second interim dividend for FY 2025-26 be paid?
The second interim dividend of Rs 3.25 per equity share will be paid on February 27, 2026.
How much did POWERGRID's standalone profit after tax increase?
POWERGRID's standalone profit after tax increased by 6.8% to Rs 4,160.17 crore.
