The Cabinet Committee on Economic Affairs, led by Prime Minister Narendra Modi, has sanctioned an expansion in the permissible equity investment limit for Power Grid Corporation of India Limited (POWERGRID). The company’s limit has been raised from Rs 5,000 crore to Rs 7,500 crore per subsidiary, while maintaining the existing cap of 15 percent of the company’s net worth. This decision aligns with the Department of Public Enterprises’ guidelines from February 4, 2010, applicable to Maharatna CPSEs.
The approval empowers POWERGRID, the nation’s leading transmission service provider, to enhance investments in its core operations. This move will aid in the development of renewable energy capacity and contribute towards achieving the target of 500 GW from non-fossil-based sources. Additionally, the company can now engage in bidding for capital-intensive transmission projects like Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.
Furthermore, this decision will foster competition in the Tariff-Based Competitive Bidding (TBCB) process for crucial transmission projects. The Cabinet Committee emphasized that this initiative will facilitate better price determination, ultimately ensuring the availability of affordable and clean energy for consumers.
The recent unaudited financial results of POWERGRID for the third quarter of the fiscal year have shown significant growth in profitability. The company recorded a standalone profit after tax (PAT) of Rs 4,160.17 crore, marking a 6.8 percent increase from the previous quarter. Standalone revenue from operations also saw a rise, reaching Rs 11,005.28 crore compared to the previous year. Moreover, the Board of Directors has approved a second interim dividend of Rs 3.25 per equity share (32.5 percent on the face value of Rs 10) for the fiscal year 2025-26, with the dividend scheduled for payment on February 27, 2026.
