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PGCIL Might Loose Status of CTU: Is it a Blessing in Disguise?

News:

In all probability, transmission behemoth Power Grid Corporation (PGCIL) will lose its status as a central transmission utility (CTU). But the company is unfazed. It rather calls the eventuality as a blessing in disguise that would unshackle it and help it diversify into other power sector domains, especially into electricity distribution and trading.

Source:- The Financial Express

SNP Insight:

Increased private paricipation in the tranmission sector might now be experienced if PGCIL lose its status of CTU. Futher it will allow PGCIL to diversify itself into other businesses where it can fit according to its profile and expertise. With the ammendment in EA 2003, PGCIL may turn out to be a stiff competitor for the existing distribution utilities as "carriage" part of business is handled mostly by PGCIL. Diversification of profile will lead to risk hedging, which is need of the hour.

Source: SNP Insight