NEW DELHI, Dec 25: The Power Trading Corporation (PTC) -- proposed to be set up by the power ministry for bulk purchase and sale of power on a commercial basis -- may be made a subsidiary of the Power Grid Corporation of India.

Official sources told The Financial Express that, initially, the ministry had earlier planned to carry out PTC's business through Power Grid. However, the proposal was dropped as it was felt that "the role of Power Grid is to wheel in power and not deal in."

"It was then suggested at a high-level meeting that this independent body can be brought in as a subsidiary of Power Grid. The government is still examining this option. To start with, PTC will be a fully commercial public sector entity. The government may later decide on having some private sector participation in the same," officials added.

A base paper, which will list out various options on the constitution of PTC, is being worked out by the ministry, and will take a couple of more weeks to be finalised.

Officials disclosed that PTC, which will deal in power sale and purchases both in India and abroad, could enter into contractual arrangements with generating companies as well as with state electricity boards (SEBs) / bulk licensees.

Experts have suggested that, to start with, PTC can utilise the transmission lines of Power Grid and the SEBs for evacuation of power under contractual arrangements providing for payment of transmission/wheeling charges. This point, according to ministry sources, is under discussion and a final view will emerge only after the base paper is ready. Besides buying and selling power from regions having power surpluses to power deficit regions within the country, PTC will also buy power from Bangladesh, Nepal, Bhutan and Pakistan, with whom talks on power exchange is on

Officials said, considering the uneven distribution of hydel resources throughout the country, it was felt that along with the exploitation of hydel potential in the north and north eastern regions, there is a need to transfer this power to the load centres.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.