NEW DELHI, February 24, 2026 : The Union Cabinet on Tuesday approved a proposal to raise the equity investment threshold of Power Grid Corporation of India Limited from ₹5,000 crore to ₹7,500 crore per subsidiary, enabling the PSU to bid for capital-intensive transmission projects.
The decision was taken by the Cabinet Committee on Economic Affairs, chaired by Narendra Modi, at its first meeting at the Prime Minister’s new office, Seva Teerth.
Announcing the decision, Information and Broadcasting Minister Ashwini Vaishnaw said the enhanced delegation under Department of Public Enterprises guidelines allows Powergrid to increase investments while retaining the cap of 15% of the company’s net worth.
The move will allow Powergrid to expand its core transmission business and support evacuation of renewable energy, aiding India’s goal of 500 GW non-fossil fuel capacity. It will also enable participation in large projects such as UHVAC and HVDC transmission networks.
Officials said the decision will boost competition under Tariff-Based Competitive Bidding (TBCB), ensure better price discovery, and help deliver affordable and clean energy to consumers.
