Power Ministry asks PGCIL to set up central transmission utility

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.