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Report No. 18 of 2014 - performance Audit on Planning and Implementation of Transmission Projects by Power Grid Corporation of India Limited and Grid Management by Power System Operation Corporation Limited of Union Government, Ministry of Power

Date on which Report Tabled:
Mon 04 Aug, 2014
Date of sending the report to Government
Government Type
Union
Union Department
Commercial
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Sector Power & Energy

Overview

Inter state and intra state power transmission systems are inter connected and together constitute the grid. In 1984, a working group constituted by Government of India (GOI) for development of 'National Grid' recommended formation of a separate central sector corporation for manning, constructing, operating and maintaining transmission facilities in the country. Accordingly, Power Grid Corporation of India Limited (PGCIL), a Navratna Central Public sector undertaking, 1 was established under the administrative control of Ministry of Power (MOP) in 1989 to implement the decision of GOI to form a 'National Grid'.

Transmission facilitates generation and utilization of power. Inadequacies in transmission network and delay in commissioning of transmission projects may not only result in loss of revenue for PGCIL but may also lead to congestion in evacuation of power. Creating lines of higher capacity than required or abnormal redundancies in transmission assets may result in extra financial burden on beneficiaries2 and public at large. Accordingly, performance audit was taken up to assess the effectiveness of planning and implementation of transmission projects executed by PGCIL during XI Plan (2007-2012).

Besides, an attempt has been made to assess shortcomings, if any, in Grid Management by Power System Operation Corporation Limited (POSOCO) a wholly owned subsidiary of PGCIL, in ensuring uninterrupted power supply, including Grid Security and Grid Monitoring.

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