Central Transmission Utility (CTU) came into existence through “The Electricity Regulatory Commission Act, 1998” enacted by the Parliament on 11th August, 1998 in which Indian Electricity Act, 1910 and Electricity (Supply) Act, 1948 were amended. The amendments established a single Transmission Agency i.e. CTU at the National level. PGCIL was designated as CTU by Government of India on December 31, 1998 for five years. Subsequently, Electricity Act, 2003 was enacted and Section 2 (10) of the Electricity Act, 2003 defines CTU as any Government company which the Central Government may notify under sub-section (1) of Section 38.
Accordingly, Government of India notified continuation of PGCIL as CTU under the Electricity Act, 2003 vide its notification dated November 27, 2003.As per MoP Order dated 17.06.2020, a new company was to be incorporated under Companies Act 2013, as a wholly Government owned Company under Ministry of Power to carry out CTU functions.
Accordingly Central Transmission Utility of India Ltd., a 100 % subsidiary of PGCIL has been established as separate company to undertake function of CTU vide OM dated 09.03.2021.