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Centre Revives Plan to Merge CTUIL with Grid India

Move aims to streamline inter-state transmission planning and create a level playing field for project bidding. The government is considering a renewed initiative to demerge the Central Transmission Utility of India Ltd (CTUIL) from the Power Grid Corporation of India and merge it with Grid Controller of India, according to sources familiar with the matter.

CTUIL, a wholly-owned subsidiary of Power Grid Corporation, currently oversees the transmission of electricity through the inter-state transmission system, acting as the central planner, coordinator, and facilitator for inter-state transmission projects. Power Grid Corporation was earlier designated as India’s central transmission utility, but CTUIL was incorporated under the Ministry of Power in 2021 to carry out these functions independently.

Under the latest discussions, Grid India could be re-notified as the central transmission utility following the merger. The proposed move is intended to prevent conflicts of interest in awarding transmission projects and to establish a structured system for transmission capacity expansion.

“The merger is expected to create a level playing field for all participants bidding for transmission projects,” one source said. A similar proposal was initiated by the Ministry of Power in 2023 to transfer CTUIL ownership to Grid India, but it did not reach a conclusion. The government has now asked Grid India to prepare a comprehensive roadmap for the demerger.

Grid Controller of India, also under the Ministry of Power, manages India’s electricity grid through the National Load Despatch Centre and five regional load despatch centres. An industry official noted that the aim of the merger is to provide a central anchor to oversee transmission capacity addition and related project bidding efficiently.

Requests for comment sent to Grid India, Power Grid Corporation, and the Ministry of Power had not received responses at the time of reporting.