Cabinet panel allows increased equity investment limit in Power Grid arms

New Delhi: The Cabinet Committee on Economic Affairs (CCEA) on Tuesday approved increasing the equity investment limit in subsidiaries of Power Grid Corporation of India to ₹7,500 crore per subsidiary from the current ₹ 5,000 crore, while retaining the existing cap of 15% of the company's net worth, for adding large capacity projects and supporting renewable energy evacuation.

Prime Minister Narendra Modi on X said, "Today, on the day of Yugabda 5127, Vikram Samvat 2082, Phalguna Shukla Ashtami, the first meeting of the Central Cabinet was held at the newly constructed Seva Tirtha. Several unprecedented decisions were taken for the country during this meeting."

Under the current guidelines of the Department of Public Enterprises on delegation of powers applicable to Maharatna companies, they can approve equity investments in joint ventures and subsidiaries up to 15% of their net worth or ₹5,000 crore, whichever is lower.


The increase in limit will help the company expand its investment in core business and support the evacuation of renewable energy capacity.

India's transmission investment is projected at ₹9.2 lakh crore by 2032 amid rising power demand and more renewable energy integration. The state-run company plays a key role in expanding transmission infrastructure by building high-capacity transmission corridors.

Power Grid's net worth is ₹92,216 crore and 15% limit equals ₹13,832 crore but ₹5,000 crore per project cap becomes a limitation. "It restricts Power Grid's participation in high-value tariff-based competitive bidding projects," a government statement said.

Rail Projects

In a separate decision, the CCEA approved three railway multi-tracking projects worth ₹9,072 crore. Information Broadcasting, Information Technology, and Railways Minister Ashwini Vaishnaw said the development will decongest tracks, allowing speedier goods and passenger transport.

"These projects will be completed in the next three to five years... 38 new passenger trains can be run with these projects," he said.

These projects include doubling the Gondia - Jabalpur portion, and third, fourth line of the Punarakh - Kiul, and Gamharia - Chandil portions. These projects cover eight districts across Maharashtra, Madhya Pradesh, Bihar and Jharkhand, increasing the existing network of Indian Railways by about 307 kilometres.

"The capacity augmentation works will result in 52 million tonnes per annum (mtpa) additional freight traffic," an official statement said.