Centre boosts Powergrid equity threshold to Rs 7,500 crore per subsidiary; move to support 500 GW non-fossil target by 2030
Times of India
by TOI BUSINESS DESKFebruary 24, 2026
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The Indian government has increased the equity investment ceiling for Power Grid Corporation of India Ltd. (Powergrid) in each subsidiary, raising it from Rs 5,000 crore to Rs 7,500 crore. This move is aimed at enhancing funding for large transmission projects and improving renewable energy evacuation capacity. The decision was approved by the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, under existing Maharatna delegation guidelines, while keeping the overall cap at 15% of Powergrid’s net worth.
The hike in the equity threshold will provide Powergrid with greater financial flexibility to invest in capital-intensive transmission projects, such as ultra-high voltage alternating current (UHVAC) and high-voltage direct current (HVDC) corridors. These projects are crucial for strengthening the national grid and enabling long-distance bulk power transfer. By expanding its investment capacity, Powergrid can better integrate geographically remote generation centers and enhance its role in supporting India’s energy infrastructure.
The increased funding will also allow Powergrid to step up investments in transmission systems dedicated to evacuating renewable energy. This is a critical enabler for achieving the country’s ambitious target of 500 GW of non-fossil fuel capacity by 2030. Currently, Powergrid handles the majority of inter-regional transfer capacity in the national grid and has already facilitated the evacuation of over 110 GW of non-fossil energy.
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Originally published on Times of India on 2/24/2026