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Ministry seeks Cabinet nod to hive off POSOCO as independent company

According to reports, the Power Ministry has sought the Cabinet’s permission to hive off Power System Operation Corporation Ltd (POSOCO) as an independent company. Currently, it operates as a 100 per cent subsidiary of PowerGrid Corporation of India.

“The company would work towards operating and maintaining the national electricity grid,” said a Senior Power Ministry official.

POSOCO would be responsible for maintaining discipline on the electricity grid and would have powers to levy a fine on defaulters. However, it is not a regulator or a quasi-judicial body but would be a professional company. It would not set transmission lines by itself, he said.

The move to make POSOCO independent is to attract more private investment into the transmission business. Currently, electricity transmission in the country is dominated by PowerGrid.

The Government is targeting to put out transmission projects worth more than Rs 20,000 crore on global auction. These are spread across Chhattisgarh, Haryana, Rajasthan and Tamil Nadu.

According to industry officials, global players such as the Spain-based Isolux Corsan and England-based Balfour Beatty Infra have evinced interest in bidding for transmission projects in India.

Private players in India such as Sterlite Industries, Adani Power, L&T Infra and Tata Projects are also looking to expand their portfolios in the transmission business.

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