CII pitches for independent central transmission utility

Industry body CII Thursday called for creating an independent central transmission utility(CTU) to ensure a transparent planning and operation process and encourage private investments.

Currently, state-run Power Grid Corporation is the CTU as well as a major player in power transmission in the country.

"The creation of an independent CTU completely distinct from any developer will ensure a transparent planning and development and operation process and encourage private investments," CII said in the report 'New-Age Power Systems for 21st Century' released Thursday.

The report also urged the government to auction all power transmission projects under tariff based competitive bidding regime to encourage investors to exploit Rs 5-6 lakh crore investment potential in next 5 years.

"The report illustrates that competitive bids have ensured tariff reductions by almost 30 per cent compared to projects awarded on a nomination basis that follow a cost-plus approach," Pratik Aggarwal, Chairman of CII's Core Group on Transmission and the Group CEO of Sterlite Power Transmission said talking to media on the report.

This becomes a huge differentiator in the renewable sector. As opposed to a transmission cost of 7-8 per cent, the same cost per unit in renewables goes up substantially as operational efficiencies in the renewable sector is far lower, he added.

Agarwal also said, "transmission is the backbone of the power sector and has a significant role to play in enabling government's vision of 24x7 Power for All, and meeting our renewable energy targets as part of global climate change commitments"