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Separation of CTU from PGCIL: A Way to Provide Level Playing Field for Private Players

News

To invite private sector investment in the power transmission sector, the government is likely to adopt reverse bidding for awarding projects.
Source: Business Standard

SNP Insights

Reverse bidding for awarding power transmission projects is a good move by the government that would not only provide level playing field for the private players but also help in reducing the tariff. However, dual role of PGCIL as transmission planning (CTU) and execution of transmission projects may privy to certain non-public and cost senstitive information  which may act in favour to PGCIL apart from having right to influence the decision making in Empowered Committee. 

To facilitate equality in the bidding process CTU should be hived off from PGCIL as also recommended by FICCI 2013 report on power transmission. Now, it will be interesting to see in near future that what new bid document for transmission projects holds to prevent the conflict between the private companies and PGCIL.
Source: SNP infra Research