The Cabinet Committee on Economic Affairs (CCEA) has raised the permissible equity investment limit for Power Grid Corporation of India (POWERGRID) in its subsidiaries to ₹75 billion (~$825.25 million) per subsidiary, up from ₹50 billion (~$550.17 million).

However, POWERGRID’s investments in its subsidiaries must not exceed 15% of its net worth.

POWERGRID’s equity investment threshold in subsidiaries was raised under the extant guidelines on the delegation of powers applicable to central public sector enterprises with ‘Maharatna’ status.

The change in the equity investment limit for POWERGRID’s subsidiaries will also enable it to participate in bids for capital-intensive transmission projects, such as ultra-high-voltage alternating-current and high-voltage direct-current transmission networks. The move is also expected to broaden POWERGRID’s participation in tariff-based competitive bidding for transmission projects.

POWERGRID develops large transmission projects to evacuate power for the country’s growing renewable energy sector.

Last year, POWERGRID won PFC Consulting’s auction to augment the interstate transmission system (ISTS) capacity by 4.5 GW and construct line bays at the Mandsaur substation in Madhya Pradesh. The project would evacuate 2,998 MW of renewable energy from the Mandsaur power substation, with an additional 1,500 MW comprising 600 MW from Sprng Energy and 900 MW from NTPC Renewable Energy.

POWERGRID also commissioned the 765 kV double-circuit Khetri–Narela ISTS project, part of the larger 8.1 GW transmission infrastructure to evacuate solar power from Rajasthan to Delhi and Northern India. The completion of the transmission project is expected to reduce curtailment woes reported by large-scale renewable energy projects in Rajasthan.

Last year, the government allowed two central public sector enterprises to invest up to ₹270 billion (~$3.14 billion) in their renewable energy subsidiaries. The CCEA authorized NTPC to invest up to ₹200 billion (~$2.32 billion) in NTPC Green Energy and NTPC Renewable Energy, as well as other joint ventures. It also allowed NLC India to invest ₹70 billion (~$815.16 million) in NLC India Renewables.