Power Grid to separate telecos; to foray into data centres

06 Dec 2022 CW Team

According to senior company officials, Power Grid Corporation of India is in the process of separating its telecom vertical into a new fully-owned subsidiary, Powergrid Teleservices, in order to have a "focused approach" and move up the value chain.

The move by the state-owned power transmission company comes as the telecom sector ramps up its 5G service across the country to bring business transformation that can contribute 2% to the national GDP.

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

B Vamsi Rama Mohan, Powergrid's Executive Director (telecom),, stated that after receiving all regulatory approvals, the telecom division will be transferred to the new subsidiary Powergrid Teleservices to provide greater impetus to the business and move up the value chain by entering the data centre business. The regulatory clearance process is currently underway.

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