"Power System Development Fund (PSDF) will be utilised for creating necessary transmission systems of strategic importance based on operational feedback by Load Dispatch Centers for relieving congestion in Inter-State Transmission Systems," Finance Minister P Chidambaram told reporters here after the Cabinet meeting.
The fund will also be utilised towards installation of shunt capacitors, series compensators and other reactive energy generators for improvement of voltage profile in the grid.
Installation of standard and special protection schemes, pilot and demonstrative projects, and for setting right discrepancies identified in protection audits on regional basis.
PSDF will be operationalised within three months, he said.