Govt to buy PowerGrid arm for Rs 35 cr

Govt to buy PowerGrid arm for Rs 35 cr

NEW DELHI .  The road to an independent grid manager is now clear with the government deciding to take over Power System Operation Corporation Ltd (Posoco), a wholly-owned subsidiary of the Power Grid Corporation of India.
 
 
 
In a meeting last week, an inter-ministerial group approved buying out PowerGrid’s equity in Posoco. A senior government official told Business Standard that the matter would now be put up to the Cabinet for approval. “The government will be buying the equity at book value of around Rs 35 crore and it will be a non-profit company,” he said.
 
 
 
Power transmission utilities will be required to charge a small levy on every unit of power, which would go towards meeting the working expenses of Posoco.  The company, which has five Regional Load Despatch Centres (RLDCs) and the National Load Despatch Centre (NLDC), was set up in 2010 as a subsidiary of PowerGrid on the recommendations of a committee under G B Pradhan, then additional secretary in the power ministry and now the chairman of Central Electricity Regulatory Commission (CERC). 

Read Also : NMDC unveils Ex-Employee portal 'Samman'