Report of the Comptroller and Auditor General of India on Planning and implementation of transmission projects by Power Grid Corporation of India Limited
India's power transmission networks constitute vital arteries of the entire power value chain. Growth of power sector is contingent to development of a robust and a non-collapsible transmission network. Transmission service provider is a key intermediary between generator and distributor of electricity and an efficient and effective transmission network facilitates generation and utilization of power. Power Grid Corporation of India Limited (PGCIL), a Maharatna Central Public sector undertaking, was established under the administrative control of Ministry of Power (MOP) in 1989 to implement the decision of Government of India to form a ‘National Grid’. 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. Also reduced margins for Short and Medium-Term Open Access result in rejection of Short-term open access application as well as variations in the prices prevailing in the different regions and regional inequalities in power prices.
In the above backdrop, performance audit was taken up to assess the effectiveness of planning and implementation of transmission projects by PGCIL during XII Plan (2012-2017).