New Delhi: A state-run Power Grid Corporation of India Ltd (PGCIL) has initiated a proposal for the incorporation of a wholly-owned subsidiary company to undertake telecommunications and digital technology business.
And on the 10th of July, a power regulator Central Electricity Regulatory Commission (CERC) approved the proposal of PGCIL to undertake the telecommunications and digital technology business for the works.
Also, a condition was applied that such wholly-owned subsidiary company by the petitioner licensee shall not be a transmission licensee or a deemed transmission licensee.
Moreover, PGCIL shall indemnify all the long-term transmission customers for any additional cost or loss, or damages caused due to the creation of the subsidiary company and needs to maintain the company account separately, as stated in the CERC order.
Also, PGCIL has stated that the beneficiaries will not be prejudiced in any way by incorporation of a wholly-owned subsidiary company since it will share 10 percent company with the beneficiaries under the provisions of the 2020 Sharing of Revenue Regulations.