NEW DELHI, June 18: The power ministry has asked state-owned Power Grid Corporation to set up a central transmission utility with separate accounting and board structure.
PGCIL is engaged in power transmission business with the responsibility of planning, implementation, operation and maintenance of Inter-State Transmission System.
There have been allegations that PGCIL is at advantage as developer of power transmission projects because it is a central transmission unit (CTU).
“PGCIL shall immediately set up a CTU, a 100 per cent owned subsidiary of PGCIL with separate accounting and board structure, which would be responsible for carrying out statutory functions, as identified for CTU under the Electricity Act 2003, and also other functions assigned to CTU by Central Electricity Regulatory Commission,” the ministry said in a letter to the PGCIL Chairman and MD on June 17, 2020.
The subsidiary would be separated from the Power Grid Corporation of India Ltd (PGCIL) into a new CTU Ltd, a wholly-owed Government of India company, within six months or till the completion of formalities.
As per the letter, the modalities of setting up of the subsidiary would be similar to those adopted during the formation of POSOCO as subsidiary company.
Power System Operation Corp (POSOCO) was also set up as an independent company for ensuring neutrality of the transmission system operations.
POSOCO was earlier part of Power Grid Corporation.
The exercise of hiving off POSOCO was aimed at putting in place an independent, secure and reliable power system operation entity at the national level as mandated under the Electricity Act, 2003. (PTI)
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