New Delhi
The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, on Tuesday approved increasing the investment limit in POWERGRID shares to Rs 7,500 crore per subsidiary from the existing limit of Rs 5,000 crore per subsidiary.
“The approval will enable POWERGRID, the country’s largest and most experienced transmission services provider, to expand its investments in its core business and support the offloading of renewable energy capacity, helping to achieve the goal of 500 GW from non-fossil sources,” a CCEA press release said.
The enhanced delegation to POWERGRID follows the Department of Public Enterprises (DPE) Guidelines as of February 2010 on Delegation of Powers applicable to Maharatana Central Public Sector Enterprises (CPSEs).
POWERGRID, which handles nearly 90% of India’s interstate power transmission, is set to play a key role in the national electricity plan, which aims to meet the peak demand of 458 GW by 2032.
Following this move, POWERGRID gained the ability to participate in bidding for capital-intensive transmission projects such as ultra-high-voltage alternating current (UHVAC) and high-voltage direct current (HVDC) transmission networks. This will increase competition among bidders for vital transportation projects in tariff-based competitive bidding (TBCB). “This ensures better price discovery and ultimately leads to clean and affordable energy for consumers,” the statement said.
