One more step planned for privatisation of power transmission sector


Report by Kamgar Ekta Committee (KEC) correspondent


The government is planning to hive off Central Transmission Utility (CTU) company from Power Grid Corporation Limited (PGCIL), a PSU and transfer its control to the Power Ministry.

PGCIL owns and operates 90% of country’s interstate and inter-regional electric power transmission system. It used to be also responsible for planning and development of the inter-state transmission network, levy of inter-state transmission charges and providing open access connectivity.

Hiving off of electricity transmission system planning and development business from PGCIL had been a long pending demand of the private players. Private power transmission companies alleged that PGCIL purposefully mismanages transmission planning so that the lines get delayed and are given to the state–run firm on nomination basis.

So the government acceded to their demand and created CTU India Limited in 2021 and transferred planning and development of the inter-state transmission network and functions of levying of inter-state transmission charges and providing open access connectivity to it from PGCIL. However, CTU India continued to be 100% owned by PGCIL. But, this also did not satisfy private players. Hence now the proposal has been made to take away the ownership of CTU India from PGCIL.

Private players like Adani transmission, Sterlite power, L&T Power Transmission will be the major beneficiaries of the government’s proposal. Govt has already approved second phase of green corridor worth Rs 12,000 crore for transmission of renewable power. The finalisation of the major Leh transmission project of the value of Rs 25,000 crore is at a very advanced stage.

The privatisation of PGCIL has been going on for decades as a result the government shareholding in it has come down to 51.3%. Its further privatisation has already been planned under National Monetization Plan.



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