The Power Ministry is considering offering independent regulatory status to the Power System Operation Corporation Ltd (POSOCO), which looks after the cross-country transmission grid.

This is seen as a major step to bring discipline in the grid. Indiscriminate withdrawal had led to a massive grid failure in July 2012, which sent more than half of the country into darkness.

The Ministry would seek the Cabinet’s approval to grant independent regulatory authority status for POSOCO, which is currently a wholly-owned subsidiary of Power Grid Corporation of India (PGCIL), said Minister of State (Independent Charge) for Power Jyotiraditya M. Scindia.

The Government plans to attract private companies’ participation in the transmission sector, and it feels that an independent regulator would encourage that.

“We would very much augur for private sector participation in the transmission sector...It is very important to give autonomy to the regulator to work independently,’’ Scindia told mediapersons on completing 300 days at the Ministry.

The autonomous status to POSOCO would help it take stringent actions against over-drawal of electricity by the States, which caused the massive blackout.

Scindia said his Ministry would also seek approval from the Cabinet Committee on Economic Affairs (CCEA) to cap domestic gas price at $5/mBtu to feed gas-based power plants.

The country is struggling is to get affordable gas for the 7,800-MW stranded gas-based power plants. Recently, the Government approved a gas-pricing formula to be applicable from April 1, that may lead to doubling of domestic gas price.

Scindia said that the Government was considering extension of financial restructuring programme (FRP) for state electricity distribution utilities (Discoms) of four more States – Jharkhand, Bihar, Andhra Pradesh and Karnataka.

>siddhartha.s@thehindu.co.in

Related Topics
comment COMMENT NOW