Govt to buy PowerGrid arm for Rs. 35 cr.

The road to an independent grid manager is now clear with the government deciding to take over Power System Operation Corporation Ltd. (Posoco), a wholly-owned subsidiary of the PowerGrid Corporation of India.

In a meeting recently, an inter-ministerial group approved buying out PowerGrid's equity in Posoco. A senior government official told Business Standard that the matter would now be put up to the Cabinet for approval. 'The government will be buying the equity at book value of around Rs. 35 crore and it will be a non-profit company,' he said.

BS