In a significant boost for India’s power transmission sector, the Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Narendra Modi, has approved an increase in Power Grid Corporation of India’s equity investment limit per subsidiary company. The new ceiling stands at ₹7,500 crore, up from the previous ₹5,000 crore.
This decision, announced on Tuesday, maintains the overall cap at 15% of the company’s total assets, aligning with the Department of Public Enterprises (DPE) guidelines issued on February 4, 2010, for Maharatna Central Public Sector Enterprises.
Powergrid, India’s largest and most experienced transmission service provider, will now have greater flexibility to invest in high-capital projects. This includes ultra-high voltage alternating current (UHVAC) and high voltage direct current (HVDC) transmission networks, crucial for expanding the grid to support renewable energy integration.
The move is expected to accelerate the utilization of renewable energy capacity, aiding India’s ambitious target of achieving 500 GW from non-fossil fuel sources by 2030. By enabling Powergrid to participate in more competitive bidding processes under the Tariff Based Competitive Bidding (TBCB) mechanism, the approval promises better pricing and, ultimately, affordable clean energy for consumers.
On the financial front, Powergrid reported robust Q3 results for FY25. Standalone profit after tax surged 6.8% to ₹4,160.17 crore from ₹3,894.09 crore in the same period last year. Operational revenue also climbed to ₹11,005.28 crore, surpassing the previous year’s ₹10,120.72 crore.
The board approved a second interim dividend of ₹3.25 per share (32.5% on ₹10 face value) for FY25-26, payable on February 27, 2026. This development underscores Powergrid’s strong financial health and strategic positioning in the evolving energy landscape.