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Informist, Tuesday, Feb. 24, 2026

 

--Cabinet OKs raising Power Grid equity invest cap to INR 75 bln vs INR 50 bln 

 

NEW DELHI – The Union Cabinet Tuesday approved raising the equity investment limit for Power Grid Corp. of India to INR 75 billion per subsidiary from INR 50 billion. "The approval will enable Power Grid, 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," the government said in a release. 

 

According to the Department of Public Enterprises' norms, 'Maharatna' public sector entities can make equity investments up to 15% of net worth or INR 50 billion per project. The INR 50-billion threshold worked as a limitation for Power Grid since 15% of its net worth – at INR 922 billion –translated to INR 138 billion. The higher threshold will allow Power Grid to better participate in high-value tariff-based competitive bidding projects, the government said. 

 

"Power Grid can now participate in the bids for capital-intensive transmission projects, such as Ultra High Voltage Alternating Current and High Voltage Direct Current transmission networks," the release said. "Additionally, it will broaden competition in the Tariff Based Competitive Bidding for selection of bidders for critical transmission projects," it added. "This ensures better price discovery, and ultimately lead to the availability of affordable and clean energy for consumers."

 

The decision also assumes importance as transmission investment needs are projected at INR 9.2 trillion by 2032, Information and Broadcasting Minister Ashwini Vaishnaw said briefing the media. 

 

For the December quarter, Power Grid reported earnings before interest, tax, depreciation, and amortisation of INR 107.77 billion, slightly higher than the INR 100.63 billion recorded a year ago. For the nine months ended December, its EBITDA was INR 300.90 billion, higher than the INR 294.83 billion a year ago. Tuesday, shares of the company closed at INR 304.80 on the National Stock Exchange, up 0.5% from previous close.  End

 

Reported by Priyasmita Dutta

Edited by Vandana Hingorani

 

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