Centre Revives CTUIL–Grid India Merger Plan to Reform and Strengthen Power Transmission Sector – EQ
In Short : The central government has revived plans to merge CTUIL with Grid India as part of a broader strategy to modernise and streamline India’s power transmission sector. The proposed merger aims to improve operational efficiency, strengthen planning and system operations, and create a more integrated institutional framework to support the country’s expanding renewable energy and grid infrastructure.
In Detail : The Centre has brought back the proposal to merge Central Transmission Utility of India Limited (CTUIL) with Grid India, signalling renewed efforts to restructure and strengthen India’s power transmission architecture. The move is part of a wider institutional reform agenda aimed at improving coordination, efficiency, and system-level planning.
CTUIL plays a critical role in the planning and development of interstate transmission systems, while Grid India is responsible for managing national-level power system operations. The proposed merger seeks to bring these complementary functions under a single institutional umbrella to enhance decision-making and execution.
By integrating transmission planning with system operations, the government aims to reduce fragmentation and improve the overall reliability of the national grid. A unified entity is expected to enable faster project approvals, better forecasting, and more effective management of grid expansion.
The revival of the merger plan is closely linked to India’s rapid growth in renewable energy capacity. With large volumes of solar and wind power being added across different regions, the transmission network must evolve to handle greater variability and complexity in power flows.
An integrated CTUIL–Grid India structure could strengthen long-term transmission planning for renewable energy corridors, green energy zones, and interstate power evacuation projects. This is seen as essential for achieving India’s clean energy and decarbonisation targets.
From a policy perspective, the merger is expected to bring clarity in roles and responsibilities across institutions involved in grid management. It may also help eliminate duplication of functions and streamline regulatory coordination with other agencies.
The reform is also intended to improve operational resilience and cybersecurity, especially as the power sector becomes increasingly digitised and interconnected. A stronger central system operator could enhance real-time monitoring and risk management.
For investors and developers, a more coordinated transmission framework could reduce uncertainties related to grid access and project timelines. This would be particularly beneficial for large renewable energy projects that depend on timely transmission infrastructure.
Overall, the revival of the CTUIL–Grid India merger reflects the government’s strategic intent to modernise India’s power transmission ecosystem. By creating a more integrated and robust institutional structure, the reform aims to support long-term grid stability, renewable energy integration, and sustainable power sector growth.
