Govt Posco Buy
In an attempt to streamline the power distribution system across the country, the independent grid manager has now agreed to the government proposal to take over Power System Operation Corporation Ltd (Posoco), a wholly-owned subsidiary of the PowerGrid Corporation of India. In a recently held meeting an inter-ministerial group approved buying out PowerGrid's equity in Posoco. The government will be buying the equity at book value of around Rs 35 crore. In the upcoming arrangement, power transmission utilities will be required to charge a small levy on every unit of power, which would go towards meeting the working expenses of Posoco. The company, which has five Regional Load Dispatch Centres (RLDCs) and the National Load Dispatch Centre (NLDC) set up in 2010 as a subsidiary of PowerGrid on the recommendations of a committee. The panel had suggested independent and sustainable revenue streams for the grid operator through separation of commercial interests from load management functions. According to experts, liberalized power markets require the system operator to be independent entity so as to ensure impartial system operation.