PSU may be formed to share PowerGrid work

New company may take over load management.

A new central public sector entity is likely to be formed after a long lay-off. The government is planning to carve out a company that will take over load management from the PowerGrid Corporation.

"The government is planning to set up a corporation to work as an independent systems operator. A committee of secretaries is discussing the issue," a power ministry official told Business Standard.

This move is according to the Electricity Act, 2003, which says there should be a separation of commercial interests from load management functions.

"The load dispatch functions should not be with an entity which has commercial interests, as the PowerGrid has," a senior government official said.

However, RP Singh, chairman and managing director of PowerGrid, said he had no knowledge of the development.

PowerGrid presently runs five load dispatch centres, often referred to as the 'brains' of the power sector "" the Northern Region Load Dispatch Centre, Eastern Region Load Dispatch Centre, North-Eastern Region Load Dispatch Centre, Western Region Load Dispatch Centre and the Southern Region Load Dispatch Centre.

A National Load Dispatch Centre is presently under implementation, which will be the nodal agency for all the regional load dispatch centres.

The new PSU will oversee the working of the five regional load dispatch centres. "The load dispatch centre shall be an independent body working for the benefit of the regions," the government official added.