In exercise of the powers conferred by subsection1 of section 38 of the Electricity Act,

## Policy Analysis Report: Notification Regarding Central Transmission Utility **1. Executive Summary:** This report analyzes a notification issued by the Ministry of Power, Government of India, dated March 9, 2021, regarding the Central Transmission Utility (CTU). The notification designates Central Transmission Utility of India Limited as the Central Transmission Utility and clarifies the role of Power Grid Corporation of India Limited as a deemed Transmission Licensee. This notification aims to ensure clarity and continuity in the operation and regulation of electricity transmission in India. The key finding is the formal designation of Central Transmission Utility of India Limited, while also ensuring the continued function of Power Grid Corporation of India Limited. **2. Introduction:** This report provides an overview and analysis of the Ministry of Power notification (S.O. 1095(E)) issued on March 9, 2021, concerning the Central Transmission Utility (CTU). This analysis is based solely on the text of the provided notification. **3. Policy Overview:** This policy appears to be a *new policy*. It clarifies the designation and function of the Central Transmission Utility. * **Core Objective(s):** As inferred from the text, the core objectives are: * To formally designate the Central Transmission Utility of India Limited as the Central Transmission Utility. * To ensure the continued operation of Power Grid Corporation of India Limited as a Transmission Licensee. * To define the functions and responsibilities of the CTU, aligning with the Electricity Act of 2003. **4. Background and Rationale:** This is a *new policy* that likely addresses the need for clear designation and operational guidelines for the Central Transmission Utility. Without such clear designation, ambiguity and potential inefficiencies in the transmission of electricity across India could arise. The notification establishes clarity by designating Central Transmission Utility of India Limited as the Central Transmission Utility while simultaneously acknowledging the existing role and expertise of Power Grid Corporation of India Limited as a deemed Transmission Licensee, which suggests a move towards a defined structure while preserving the established operational capabilities. **5. Key Provisions / Changes:** * **Designation of Central Transmission Utility of India Limited:** The notification designates Central Transmission Utility of India Limited as the Central Transmission Utility, as per Section 2(10) of the Electricity Act, 2003. This implies Central Transmission Utility of India Limited is now responsible for the functions outlined within the act. * **Continued Role of Power Grid Corporation of India Limited:** The notification states that Power Grid Corporation of India Limited, previously declared as the CTU, will continue to function as a "deemed Transmission Licensee." This allows them to continue discharging functions incidental and connected with the Transmission Licensee status and allows them to undertake functions as directed by the Central Government or Authority. * **Effective Date:** The notification will be effective from April 1, 2021. **6. Target Audience and Stakeholders:** Based on the provided text, the directly affected parties include: * **Central Transmission Utility of India Limited:** The primary stakeholder, now officially designated as the CTU. * **Power Grid Corporation of India Limited:** Affected by the clarification of its continued role as a deemed Transmission Licensee. * **Central Electricity Regulatory Commission (Central Commission):** The notification references the Central Commission's regulations and directions, implying they play a role in oversight. * **Ministry of Power:** As the issuing authority. * **Electricity consumers:** While not directly mentioned, the efficient operation of the transmission utility ultimately impacts consumers. * **Other Transmission Licensees:** As the CTU coordinates the operation of the interstate transmission system, its designation has a direct effect. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Power is responsible for issuing the notification. The Central Transmission Utility of India Limited is responsible for undertaking the functions of the CTU. Power Grid Corporation of India Limited continues its role as a deemed Transmission Licensee. The Central Commission oversees the CTU through regulations and directions. * **Timelines:** The notification is effective from April 1, 2021. * There are no specific procedures outlined in the text. **8. Expected Outcomes / Impact of Changes:** The likely intended outcomes of this notification are: * **Clearer Regulatory Framework:** Provides a clearer regulatory framework for electricity transmission by formally designating the Central Transmission Utility. * **Continuity of Operations:** Ensures continuity in the operation of the transmission network by allowing Power Grid Corporation of India Limited to continue its functions as a Transmission Licensee. * **Efficient Transmission System:** Contributes to a more efficient and reliable electricity transmission system. **9. Conclusion:** The Ministry of Power notification formally designates the Central Transmission Utility of India Limited as the Central Transmission Utility and clarifies the continued role of Power Grid Corporation of India Limited as a deemed Transmission Licensee. This clarification is significant for ensuring the efficient and reliable operation of the electricity transmission system in India and provides a defined structure for the operations.

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