The transmission strategy of Government gives a thrust on development of National grid including inter-state connection, technological upgradation, and optimisation of Transmission cost. The transmission infrastructure of India can be divided into three parts,

• Central Transmission Utility
• State Transmission Utility
• Independent Power Transmission Companies

According to the Electricity Act 2003, a Government Company shall be notified by the Central Government as a Central Transmission Licensee. From 1998 to 2020, PGCIL was entrusted with the functions of Central Transmission Utility. In terms of Section 38 of the Electricity Act, a transfer scheme was formulated and PGCIL was demerged to create a new company. i.e., Central Transmission Utility India Ltd. which was entrusted with the functions of CTU with effect from 1st April 2021.

The CTU has been restricted from taking up the following to avoid any conflict of interest while exercising its statutory functions:

• Generation of electricity
• Trading in electricity

Initially, PGCIL had dual responsibility, i.e.,

1. Project development as transmission license
2. Statutory functions as Central Transmission Utility

1. The Statutory functions under Section 38 of The Electricity Act, 2003
2. The Delegated Functions in terms of CERC (Planning, Coordination and Development of economic and efficient Inter-State Transmission System by Central Transmission Utility and other matters) Regulations, 2018

Section 38(2) of the Electricity Act, 2003 talks about the functions of the CTU as:

1. to undertake transmission of electricity through inter-state transmission system;
2. to discharge all functions of the Planning and co-ordination relating to interstate transmission system with:-
   1. State Transmission Utilities
   2. Central Government
   3. State Government
   4. Generating Companies
   5. Regional Power Committee
   6. Central Electricity Authority
   7. Licensees
   8. Any other person notified by the Central Government in this behalf.
3. To ensure the development of an efficient, co-ordinated and economical system of interstate transmission lines for smooth flow of electricity from Generating Stations to the Load Centers;
4. To provide non-discriminatory open access to its transmission system for use by:
   1. Any licensee or Generating Company, on payment of the transmission charges
   2. Any consumer, as and when open access is provided by the State Commission under subsection (2) of Section 42, on payment of the transmission charges and a surcharge thereon, may be specified by Central Commission.

Central Electricity Regulatory Commission, under the CERC (Planning, Coordination and Development of Economic and Efficient Inter-State Transmission System by Central Transmission Utility and other related matters) Regulations, 2018, delegates certain functions to the CTU, which are as follows:

• To lay down the broad principles, procedures, and processes to be followed for planning and development of an efficient, co-ordinated, reliable and economical system of Inter- State transmission system (ISTS) for smooth flow of electricity from generating stations to the load centers.
• To ensure a wider participation of stakeholders in the planning process and specify the procedures for stakeholder’s consultation and participation.
• To specify the procedures to bring about transparency in the planning process;
• Demarcation of the roles and responsibilities of various organisations in line with the Act
• To ensure stakeholder consultation and transparency
• Defining process for transmission planning, application of transmission license and application for grant of tariff The Commission can also grant for relaxation in the regulation. The Commission also has the power to remove any difficulty within the provisions of the Regulation.

The State Government may notify the board or a Government Company as the State Transmission Utility. Such company or companies shall be deemed to be transmission licensees under this Act. The word company or companies shall be deemed to be transmission licensees under this Act, and imply that there can be more than one State Transmission Utility.

State Transmission Utility has been barred from engaging in the business of trading in electricity.

According to Section 39(2) the functions of State Transmission Utility are -

1. To undertake transmission of electricity through intra-State transmission system
2. To discharge all functions of planning and co-ordination relating to intra-State transmission system with:
   1. Central Transmission Utility
   2. State Government
   3. Generating Companies
   4. Regional Power Committees
   5. Central Electricity Authority
   6. Licensees
   7. Any other person notified by the State Government in this behalf.
3. To ensure development of an efficient, coordinated and economical system of intrastate transmission lines for smooth flow of electricity from a generating station to the load centers.
4. To provide non-discriminatory open access to its transmission system for use by:
   1. any licensee or generating company on payment of the transmission charges;
   2. any consumer as and when such open access is provided by the State Commission under sub-section (2) of Section 42, on payment of the transmission charges and a surcharge thereon as may be specified by the State Commission.