In a move aimed at wooing and retaining investments in the power sector, the power ministry will approach the Cabinet, seeking independent transmission regulator status to Posoco and also fixing the price of gas for electricity generation plants at $5 per mmBtu.
The proposal is aimed at providing greater autonomy to Power System Operation Corporation (Posoco), currently an arm of state-run Power Grid.
“We are looking for private sector participation in the transmission sector. Therefore, there is a need for a regulator, a role that Posoco cannot perform if it works as a subsidiary of Power Grid,” power minister Jyotiraditya Scindia told a press conference.
After the autonomous status of Posoco, the organisation will act as a regulator for the transmission grid, primarily engaged in maintaining grid discipline and discouraging overdrawal of electricity by the states. The ministry, which is struggling to source gas at an affordable price for the 7,800-MW stranded gas-based power plants will also approach the Cabinet for fixing the price of the fuel at $5 per mmBtu (million British thermal unit), for the power sector.
At present, the power sector sources domestic gas at $4.2 per mmBtu, but the price is expected to be doubled from April 1, 2014, after approval to recommendations of a panel headed by C Rangarajan, chairman of PMEAC.