Centre initiates separation of power transmission business from PGCIL
The government has directed PGCIL to immediately set up central transmission utility
The Central government has initiated separation of electricity transmission system planning business from the Power Grid Corporation of India (PGCIL).
The move will help PGCIL diversify to other businesses. This comes just in time when the government has kicked off a power distribution programme starting with the Union Territories. PGCIL may explore bidding for some of the upcoming distribution licences on block.
The government has directed PGCIL 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 will be separated into a wholly-owned government entity in six months. PGCIL has been asked to prepare rules and guidelines for the process.