16 September 2008 - The Indian government is considering plans to split the country's electricity transmission operations in a bid to attract investment from the private sector.

The Economic Times reported that the Indian government is planning to bifurcate the transmission system operations by separating the national grid and load dispatch centers (LDCs) from the ownership of the transmission lines, according to the news source.

The country's power ministry had set up a committee in February 2008, to examine issues relating to the ring-fencing of LDCs to grant them greater autonomy. This was taken up in line with the Electricity Act 2003 and the National Electricity Policy.

The paper reported that the Indian government has directed the state governments to establish a separate representative board to oversee LDCs. It has also been suggested that capital expenditure plans for the modernization of LDCs be submitted to the respective electricity regulatory commissions for approval before March 2009.