PGCIL to hive off power transmission planning business

NEW DELHI: 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.