Centre boosts Powergrid equity threshold to Rs 7,500 crore per subsidiary

NEW DELHI: The authorities has raised Power Grid Corporation of India Ltd’s (Powergrid) equity concern ceiling successful each subsidiary from Rs 5,000 crore to Rs 7,500 crore, successful a determination designed to bolster backing for ample transmission projects and renewable vigor evacuation.The furniture committee connected economical affairs (CCEA), chaired by Prime Minister Narendra Modi, approved the higher threshold nether existing Maharatna delegation guidelines, portion retaining the wide headdress of 15 per cent of the company’s nett worth. Under section of nationalist enterprises guidelines issued connected 4 February 2010, Maharatna CPSEs specified arsenic Powergrid bask enhanced autonomy to marque ample investments without case-by-case authorities approvals.

Impact connected Powergrid’s task pipeline

The higher bounds expands Powergrid’s headroom to backmost capital-intensive transmission schemes, peculiarly ultra precocious voltage alternating existent (UHVAC) and precocious voltage nonstop existent (HVDC) corridors.These assets signifier the backbone of long-distance bulk powerfulness transfer, allowing the inferior to standard up its relation successful strengthening the nationalist grid and integrating geographically distant procreation centres.

Renewable propulsion and capableness evacuation

Government officials said the further fiscal flexibility volition assistance Powergrid measurement up concern successful transmission systems dedicated to evacuating renewable power, a captious enabler for India’s extremity of 500 GW of non-fossil capableness by 2030.Powergrid already handles the bulk of inter-regional transportation capableness successful the nationalist grid and has facilitated the evacuation of implicit 110 GW of non-fossil energy, positioning it arsenic a cardinal subordinate successful the adjacent limb of greenish capableness build-out.With a higher equity headdress per subsidiary, Powergrid tin much aggressively enactment successful tariff based competitory bidding (TBCB) for caller transmission projects, including complex, high-ticket networks.The authorities expects deeper information successful TBCB to broaden competition, assistance sharper terms discovery, and, implicit time, construe into much affordable and cleaner powerfulness for concern and retail consumers.