The Cabinet Committee on Economic Affairs, chaired by the Prime Minister, approved an enhanced delegation to Power Grid Corporation of India Limited under the Department of Public Enterprises guidelines dated four February 2010. The approval raises the permissible equity investment limit per subsidiary from Rs 50,000 million (mn) to Rs 75,000 million (mn) while retaining the existing cap of 15 per cent of the company's net worth. The move follows the Maharatna classification and applies under extant delegation of powers for Maharatna central public sector enterprises.

The enhanced limit will enable Power Grid Corporation of India Limited, the largest transmission service provider in the country, to expand investment in its core transmission business and to support the evacuation of renewable energy capacity. The change is intended to assist the drive to achieve the target of 500 gigawatt (GW) from non-fossil-based sources by facilitating timely transmission infrastructure. It will allow the company to plan larger equity stakes in strategic subsidiaries and to mobilise resources more efficiently.

The company can now participate in bids for capital intensive transmission projects, including Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks, and in Tariff Based Competitive Bidding for selection of bidders for critical transmission links. Broadening participation is expected to increase competition and improve price discovery in project procurement. Enhanced competition should contribute to lowering the delivered cost of transmission services over time.

Overall, the delegation is projected to strengthen the transmission network, expedite evacuation of renewable energy, and support the availability of affordable and clean energy for consumers. Retaining the 15 per cent net worth ceiling aims to preserve financial prudence while allowing larger strategic investments. The approval is part of broader efforts to bolster infrastructure capacity and to meet national energy transition objectives.