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Indian government to review CTU separation decision
* : global transmission report * : hsdadmin * : 2016-09-30 * : 1

Reportedly, the Cabinet is now considering strengthening an existing company or any wing of any government agency or Public Sector Utility (PSU) to carry on the task of the CTU, as setting up a new company is a tedious process.


In May 2016, the Ministry of Power (MoP) had approached the Union Cabinet with a proposal to separate the CTU status from state-owned Power Grid Corporation of India Limited (POWERGRID). As per the plan, after the separation, an independent entity will own, manage and regulate power transmission network. Meanwhile, Power Finance Corporation Consulting Limited (PFCCL) and Rural Electrification Corporation Transmission Company Limited (RECTPCL) will continue to bid out transmission projects, and POWERGRID will be allowed to participate in the bidding process. The separation was planned to help in attracting private investment to the transmission segment and will allow limited flexibility to the Central Government to award transmission projects of strategic importance and related to energy security to POWERGRID on nomination basis.