India gets a new power central transmission utility

India on Thursday created a central power transmission utility, separating the business from state-run Power Grid Corp of India (PGCIL).

The Central Transmission Utility of India has been incorporated and a certificate of incorporation had been issued for the same, sources said.

Hiving off of electricity transmission system planning business from PGCIL had been 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.

The government had in June last year 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.

Private power transmission companies have alleged that PGCIL purposefully mismanages transmission planning so that the lines get delayed and are given to the state –run firm on nomination basis. On the other hand, PGCIL has been saying the transmission planning process is collaborative and transparent and there is a well-established procedure of planning of transmission system, under which transmission planning is carried out by the Central Electricity Act (CEA) in association with CTU, POSOCO and other stakeholders.


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