Move aims to remove conflicts of interest and streamline transmission capacity expansion.

Centre Revives Plan to Merge CTUIL with Grid India to Reform Power Transmission

The Centre has revived discussions to demerge the Central Transmission Utility of India Ltd (CTUIL) from Power Grid Corporation of India and subsequently merge it with Grid Controller of India (Grid India), in a bid to overhaul India’s power transmission framework. CTUIL, incorporated in 2021 as a wholly owned subsidiary of Power Grid, currently functions as the central transmission utility, responsible for planning, coordination, and facilitation of the interstate transmission system. The proposed restructuring seeks to eliminate potential conflicts of interest in awarding transmission projects, since Power Grid is also a major bidder. After the merger, Grid India may be re-notified as the central transmission utility, ensuring neutral oversight and a level playing field for all developers. A similar proposal was initiated by the Ministry of Power in 2023 but remained inconclusive. Recently, Grid India has been asked to prepare a comprehensive roadmap for the demerger and merger process. Grid India currently operates the national electricity grid through the National Load Despatch Centre and five regional load despatch centres. Industry officials believe the move will bring greater structure, transparency, and coordination to transmission capacity addition and project bidding in India’s rapidly evolving power sector.