By Enersider Desk | New Delhi
The Union Cabinet has approved enhanced delegation of powers to Power Grid Corporation of India Ltd (POWERGRID), enabling the state-owned transmission company to step up investments in its core business and facilitate evacuation of renewable energy capacity, supporting the national target of achieving 500 GW of installed capacity from non-fossil fuel-based sources.
The decision was taken by the Cabinet Committee on Economic Affairs at a meeting chaired by Prime Minister Narendra Modi under the extant guidelines dated February 4, 2010, issued by the Department of Public Enterprises (DPE) on delegation of powers applicable to Maharatna Central Public Sector Enterprises (CPSEs).
Under the approval, POWERGRID’s permissible equity investment limit has been enhanced from ₹5,000 crore to ₹7,500 crore per subsidiary, while retaining the existing overall cap of 15 per cent of the company’s net worth.
With the enhanced delegation, the company will be able to participate more effectively in capital-intensive transmission projects such as Ultra High Voltage Alternating Current (UHVAC) and High Voltage Direct Current (HVDC) networks.
UHVAC systems operate at extremely high voltage levels to transmit large quantities of electricity over long distances efficiently, reducing transmission losses. HVDC technology, on the other hand, uses direct current instead of alternating current, making it particularly suitable for bulk power transfer across long distances and for integrating renewable energy sources located far from consumption centres.
The move is also expected to widen competition in Tariff Based Competitive Bidding (TBCB), a mechanism under which transmission projects are awarded through competitive price bidding to ensure cost efficiency and better tariff discovery, ultimately facilitating the availability of affordable and clean energy for consumers, an official statement said.
