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Central transmission utility hived off from Power Grid Corporation

Power Grid, as a CTU, is responsible for the wheeling of power generatedby power producers and involved in planning transmission systems and operations.

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As PGCIL is also a power transmission construction company, it participates in tenders for competitive bidding for projects, alongside private players.

Shreya Jai New Delhi

2 min read Last Updated : Jun 18 2020 | 4:21 AM IST

In a landmark decision, the Centre has decided to hive off the Central Transmission Utility (CTU) function of state-owned Power Grid Corporation of India (PGCIL).

Pending since 2015, this move has been taken to avoid conflict of interest while awarding power transmission projects.

As a CTU, Power Grid is responsible for wheeling of power generated by producers and involved in planning transmission systems and operations. It also has an additional role of collecting tariff from power generators and state electricity boards using the transmission infrastructure. The CTU retains its share and then distributes the remaining to other private licensees.

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