The government on Wednesday initiated separation of electricity transmission system planning business from Power Grid Corp of India (PGCIL)– a long pending demand of the industry for fair bidding of transmission lines.
The move will help PGCIL diversify to other businesses and comes just in time when the government has kicked off a power distribution programme starting with the union territories. Sources said Power Grid Corp may explore bidding for some of the upcoming distribution licences on block.
The government has directed Power Grid Corp to immediately set up Central Transmission utility (CTU) as a 100% subsidiary with separate accounting and board structure which would identify and plan transmission network in the country.
The CTU subsidiary would be separated into a wholly owned government entity in six months, sources said. PGCIL has been asked to prepare the rules and guidelines for the process.
Private power transmission companies have time and again alleged that PGCIL purposefully mismanages transmission planning so that the lines get delayed and are given to the state –run firm on nomination basis. On the other hand, PGCIL has been saying the transmission planning process is collaborative and transparent and there is a well-established procedure of planning of transmission system, under which transmission planning is carried out by the Central Electricity Act (CEA) in association with CTU, POSOCO and other stakeholders.
Source: Economic Times