In a move to end the monopoly of central transmission utility PowerGrid Corporation, the government may allow private companies to set up power transmission projects within the states.
"Future intra-state transmission projects ... To be given on the basis of competitive bids, at present only PowerGrid is engaged in such projects," Power Secretary P Uma Shankar told PTI.
The government in a meeting of state power secretaries on February 29 may discuss allowing private players to enter intra-state electricity transmission space along with the issue of implementation of the National Electricity Fund.
At present, private companies can bid for inter-state transmission projects.
For intra-state transmission system, power transmission projects are automatically given to PowerGrid Corp, but now the government may invite bids from private transmission firms as well.
The meeting on Wednesday would also discuss the setting up of the National Electricity Fund to provide interest subsidy worth Rs 8,466 crore for projects in the power distribution sector.
The National Electricity Fund (Interest Subsidy Scheme) would provide interest subsidy on loans to be disbursed to the distribution companies (discoms) - both in the public and private sector.
The fund is aimed at improving the distribution network for areas not covered by Rajiv Gandhi Gramin Vidyutikaran Yojana (RGGVY) and Restructured Accelerated Power Development and Reforms Programme (R-APDRP).