Equity investment threshold raised to Rs.7,500cr
POWERGRID can now participate in bids for capital-intensive transmission projects, such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) transmission networks, as per revised equity investment.
Additionally, the revised terms will broaden competition in the Tariff Based Competitive Bidding (TBCB) for selection of bidders for critical transmission projects, the Ministry of Power said.
It added that the Cabinet had approved on 24 Feb 2026 enhanced delegation to POWERGRID from the extant guidelines on delegation of powers to Maharatna CPSEs for increasing equity investment threshold from Rs.5,000 crore per subsidiary to Rs.7,500 crore per subsidiary and help meet national target of 500 GW from non-fossil-based sources.
But the existing cap of 15 per cent of the company’s net worth has been retained.
“This ensures better price discovery, and ultimately lead to the availability of affordable and clean energy for consumers,” it added.
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, said the Ministry. Fiinews.com
