Power Grid may demerge telecom business into a new subsidiary

5 Dec 2022 , 08:17 AM

According to senior corporate officials who talked to PTI, Power Grid Corporation of India Ltd. is in the process of separating its telecom vertical into a new fully-owned subsidiary, Powergrid Teleservices Ltd., in an effort to have a “targeted strategy” and climb up the value chain.

The move by the state-owned power transmission giant comes as the telecom industry is stepping up nationwide 5G service to bring about a business transformation that can contribute 2% to the national GDP.

The Central Electricity Regulatory Commission (CERC) has also given the state-owned power transmission company permission to run data centres.

The deployment of 4G or 5G base stations on high-voltage power transmission towers has been announced by telecom companies as a goal for the next two years. Powergrid is “well positioned” to assist telcos in this endeavour because PGCIL has “one of the largest optical fibre ground networks in the country providing communication services.”

Powergrid has a sizable 1.76 lakh km power transmission network that it uses to help supply energy throughout the nation.

For feedback and suggestions, write to us at [e-mail]