The government has formally started the process of making the Power System Operation Corp Ltd (POSOCO) an independent grid manager.

The national grid operator POSOCO has so far been operating as a wholly-owned subsidiary of government-run transmission utility Power Grid Corp. of India Ltd (PGCIL).

Power Minister Jyotiraditya Scindia said that the process of separating the national grid operator from PGCIL would be achieved over the next one year.

Speaking on the topic, Scindia said, "We are working on a plan to give full independence to POSOCO and make it an independent regulator (for electricity grids). It is likely to be ready in the next 12 months."

Following its separation from PGCIL and becoming an independent entity, POSOCO will have the NLDC (national load despatch centre) and a total of five RLDCs (regional load despatch centres) under its control.

After independence, its main job will be to monitor the various state load despatch centres, and also to oversee cross-border trade as well as to coordinate with the power exchanges.

The independence of POSOCO will also enable the appointment of a managing director-level officer to head it. Currently, just an executive director-level officer can be appointed to head the grid operator.

Independent POSOCO will be designated as a 'Schedule A' corporation with a not-for-profit objective.