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Journalism of Courage
The power ministry has quietly a circulated a proposal to strip Powergrid Corp of its dual functions of operating as well as constructing power transmission lines. As per the ministry’s concept paper, it plans to transfer the function of operating power lines onto an altogether new company.
Presently, Powergrid is mandated to construct inter-state transmission lines as well as operate the regional load dispatch centres. But with more private investments flowing into the transmission business, the ministry says there is a need for an independent system operator (ISO). This, it says, is necessary to dispel fears of a “player also being a referee”. Load dispatch centres are entities, which decide the minute-to-minute flow of energy within the country.
Ministry officials only revealed that discussions are at a preliminary stage. On several occasions, there was a strong demand from private investors and the power regulators to separate Powergrid’s functions.
For example, BSNL was created out of the department of telecommunications (DoT) by separating the commercial function from the regulatory function. Sources said the current proposal being considered for Powergrid is on similar lines.
According to the concept paper, the ministry plans to create a new company, which would be wholly-owned by the Centre and carry out all functions of an ISO. The tentative name proposed for this new PSU is Power System Corp.
It would be responsible for: supervising and controlling all aspects of regional and national load dispatch centres; acting as the apex organisation for the load dispatch centres; ensuring planning and implementation of infrastructure for smooth operations; carrying out the accounting, billing and collection of transmission charges.
