Another step towards privatization – requirement of license for transmission lines abolished

Kamgar Ekta Committee (KEC) correspondent’s report

The Ministry of Power has set new rules to facilitate power transmission. Now consumers with load above a specified amount and energy storage systems (ESS) will be allowed to install, operate and maintain dedicated transmission lines without the need for a license.

By allowing such a facility, a new category of bulk consumers will emerge in the country, who will get more cheap electricity. This facility was already available to generating companies and captive generating stations.

The new rules provide that any generating company or any person installing captive generating plant or energy storage system or any consumer whose load is not less than 25 MW in case of inter-state transmission system and 10 MW in case of intra-state, he will not be required to obtain a license to establish, operate or maintain a dedicated transmission line to connect the transmission system to the grid.

The Union Power Minister said that eliminating the requirement of license for dedicated transmission lines will lead to ease of doing business for the industry.

After major privatization of power generation, now the corporate houses want privatization of transmission and distribution for which the Central Government is taking various steps. Privatization of the transmission sector will now be further encouraged by removing the requirement of license for setting up dedicated transmission lines.

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