The proposal is aimed at providing greater autonomy to Power System Operation Corporation Limited (POSOCO), currently an arm of state-run Power Grid .
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"We are looking for private sector participation in the transmission sector, therefore there is a need for a regulator which POSOCO cannot perform if it works as a subsidiary of Power Grid," Power Minister Jyotiraditya Scindia told a press conference.
Post 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 USD 5 per mmBtu (million British thermal unit), for the power sector.
At present, the power sector sources domestic gas at USD 4.2 per mmBtu, but the price is expected to be doubled from April 1, 2014, following approval of recommendations of a panel headed by C Rangarajan, Chairman of the Prime Minister's Economic Advisory Council.
Last month, Scindia had said that power projects would get any surplus gas produced in the country until March 2016, after meeting the requirement of the fertiliser plants.
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