Central transmission utility Power Grid Corporation is mulling a foray into electricity distribution sector and is in talks with various states, including Uttar Pradesh and Orissa, for the same.
"We want stake in a distribution company but we would not be buying or selling power. So, we are working out whether we can have a Special Purpose Vehicle or a subsidiary in this regard.
"Legally, we are looking at what can be done," a senior Power Grid official told PTI.
The company is in talks with distribution companies in the states of Uttar Pradesh, Jammu and Kashmir, Orissa and Jharkhand as part of efforts to enter the distribution sector.
"We are open to partnering with a public or a private firm for the distribution business...," he said.
According to the official, Power Grid is also open to distribution activities in overseas markets, where it may even buy and sell power.
"Outside India, we would want to work as a full fledged distribution company," the official said.
Plans to enter the distribution segment are among the various diversification efforts being considered by Power Grid, which is currently focused on setting up transmission lines.
The public sector firm is also in talks with SAIL, NALCO, RINL to form a joint venture for setting up a manufacturing unit that would build towers, insulators, conductors and other ancillary equipment for power transmission network.
Steel Authority of India Ltd (SAIL), National Aluminium Company (NALCO) and Rashtriya Ispat Nigam Ltd (RINL) are major players in the steel and minerals sector.
In the current Five-Year Plan (2012-17), PowerGrid expects to see a capital expenditure of Rs 1 lakh crore and most of the required funds have already been tied up.
Power Grid plans to add about 40,000 circuit kilometres in the 12th Five-Year Plan period (2012-17). At present, it has over 94,000 circuit kilometres of lines.
One circuit kilometre generally refers to one kilometre of electrical transmission line.
The company reported nearly 21% jump in profit after tax at Rs 3,255 crore in the last fiscal. In 2010-11 period, the same stood at Rs 2,697 crore.