Cabinet approves enhanced investment powers for POWERGRID to boost transmission infrastructure
EUR7500M
Deal Value
500 MW
Capacity
The Cabinet Committee on Economic Affairs (CCEA) has approved enhanced delegation of powers to Power Grid Corporation of India Limited (POWERGRID) under the existing Department of Public Enterprises (DPE) guidelines. POWERGRID’s permissible equity investment limit has been increased from the current Rs 5,000 crore per subsidiary to Rs 7,500 crore per subsidiary.
Deal Analysis
The Cabinet Committee on Economic Affairs (CCEA) has approved enhanced investment powers for Power Grid Corporation of India Limited (POWERGRID), increasing its permissible equity investment limit from Rs 5,000 crore to Rs 7,500 crore per subsidiary. This decision, announced on February 25, 2026, aims to bolster India's transmission infrastructure by enabling POWERGRID to invest more substantially in its subsidiaries. The approval from both the CCEA and the Union Cabinet of India underscores the strategic importance of strengthening the country's power transmission capabilities.
This investment boost will likely facilitate the development and expansion of transmission networks, supporting the integration of renewable energy sources and improving overall grid stability. The increased investment limit provides POWERGRID with greater financial flexibility to undertake larger and more complex transmission projects. As the central transmission utility of India, POWERGRID's enhanced investment capacity is expected to have a significant positive impact on the country's power sector, particularly in supporting the government's ambitious energy transition goals.
- Increased investment limit for POWERGRID from Rs 5,000 crore to Rs 7,500 crore per subsidiary.
- Approval from the Cabinet Committee on Economic Affairs (CCEA) and the Union Cabinet of India.
- Focus on enhancing India's transmission infrastructure.
- POWERGRID is the central transmission utility of India.
Market Context: The power transmission sector in India is crucial for ensuring reliable and efficient electricity supply across the country. Investments in this sector are vital for supporting economic growth, integrating renewable energy sources, and improving grid stability.
Source Intelligence
KEY DETAILS
The overall cap remains unchanged at 15% of the company’s net worth. Quote: The overall cap remains unchanged at 15% of the company’s net worth.
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Deal Size
POWERGRID’s permissible equity investment limit has been increased from the current Rs 5,000 crore per subsidiary to Rs 7,500 crore per subsidiary.
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Capacity
supporting India’s target of achieving 500 GW of non-fossil fuel-based power capacity
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Location
strengthening India’s national grid and renewable energy integration.
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Announcement
Cabinet Approves Enhanced Investment Powers for POWERGRID to Boost Transmission Infrastructure - SolarQuarter Facebook Instagram Linkedin Mail RSS Twitter Youtube Home Africa Americas Australia Europe India & South Asia Middle East South East Asia Search SolarQuarter Empowering.
PARTIES MENTIONED IN SOURCE
P
Power Grid Corporation of India Limited
investor
"enhanced delegation of powers to Power Grid Corporation of India Limited (POWERGRID)"
high quality
Enriched Feb 26, 2026
Timeline
Announced
Feb 25, 2026
Signed
Closed
Counterparts (3)
Market Context
This deal is part of the Transmission sector in India.
146
Transmission deals
166
deals in India
Source
solarquarter.com
1 of 145 Transmission deals tracked this month · Updated daily
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