Power Grid Corporation of India received a significant boost to its investment capabilities as the Cabinet Committee on Economic Affairs approved enhanced delegation powers on February 24, 2026. The approval increases the company's equity investment threshold from Rs.5,000 crore to Rs.7,500 crore per subsidiary, marking a substantial expansion in its financial autonomy.

Cabinet Approval Details

The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, granted the enhanced delegation under the existing guidelines dated February 4, 2010, of the Department of Public Enterprises applicable to Maharatna CPSEs. The approval maintains the existing cap of 15% of the company's net worth while significantly raising the per-subsidiary investment limit.

Strategic Impact on Transmission Infrastructure

The enhanced investment powers position POWERGRID to participate more actively in capital-intensive transmission projects. As the largest and most experienced transmission service provider in the country, the company can now bid for major infrastructure developments including:

• Ultra High Voltage Alternating Current (UHVAC) transmission networks
• High Voltage Direct Current (HVDC) transmission systems
• Critical transmission projects under Tariff Based Competitive Bidding (TBCB)

Renewable Energy Expansion Support

The approval directly supports India's ambitious renewable energy targets, enabling POWERGRID to expand investments in its core business and facilitate the evacuation of renewable energy capacity. This enhancement contributes to achieving the national target of 500 GW from non-fossil-based sources.

Market Competition and Price Discovery

The increased investment threshold is expected to broaden competition in the Tariff Based Competitive Bidding process for transmission project selection. This enhanced competition mechanism aims to ensure better price discovery and ultimately contribute to the availability of affordable and clean energy for consumers.

Regulatory Compliance

POWERGRID disclosed the Cabinet approval through a formal communication to stock exchanges on February 24, 2026, in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The disclosure was accompanied by the official press release issued by the Cabinet Committee on Economic Affairs via the Press Information Bureau.

Power Grid Corporation of India Ltd. announced the successful completion of a significant transmission project by its wholly owned subsidiary, POWERGRID Narela Transmission Limited. The project represents a major milestone in India's renewable energy transmission infrastructure development.

Project Details and Scope

The completed project involves the "Transmission System Strengthening Scheme for evaluation of power from Solar Energy Zones in Rajasthan (8.1 GW) under Phase-II Part-G." This inter-state transmission system was secured through tariff-based competitive bidding, demonstrating the company's competitive capabilities in the transmission sector.

Commissioning Timeline

The transmission system achieved complete commissioning on 07th December, 2025. The formal Notification for Commercial Operation (DOCO) was subsequently received via email on 24th February, 2026, marking the official commencement of commercial operations.

Strategic Significance

This project strengthens India's renewable energy transmission infrastructure by facilitating the evacuation of solar power from Rajasthan's designated solar energy zones. The 8.1 GW capacity addition supports the country's renewable energy goals and enhances grid connectivity for solar power integration.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The disclosure was signed by Satyaprakash Dash, Company Secretary and Compliance Officer, ensuring proper regulatory adherence.