Power Grid Corporation of India Ltd is in the process of spinning off its telecom verticals into a new wholly-owned subsidiary, Powergrid Teleservices Ltd, in a bid to take a “focused approach” and move up the value chain, senior company officials said.


The state power transmission major’s move comes hot on its heels as the telecom sector ramps up its 5G service across the country for a business transformation that can add two percent to the national GDP.


The state power transmission major has also received approval from the Central Electricity Regulatory Commission (CERC) to operate data centers.


“Powergrid’s telecoms division will be transferred to the new subsidiary Powergrid Teleservices after receiving all regulatory approvals to give the business greater impetus and move up the value chain by entering the data center business. The regulatory approval process is ongoing. Powergrid Managing Director (Telecom) B. Vamsi Rama Mohan told PTI on the sidelines of INFOCOM 2022 organized by ABP Group.


He also said pilots demonstrating BTS and FM mobile radio transmission on high-voltage transmission towers “have shown promising results.”


“With the focus on high-speed data networks across the country, the telecom business holds tremendous potential for the future,” he said.


Telcos have announced plans to have a national 5G footprint within the next two years, and Powergrid is “well positioned” to help telcos (telecom companies) deploy their 4G or 5G base stations on the high-voltage transmission towers since PGCIL “one” has the largest fiber optic ground network in the country providing communications services”.


“We have one of the largest fiber optic networks of 76,000 km. Pilot projects to demonstrate 4G/5G BTS on pylons have shown promising results and are running smoothly. This gives us confidence that Powergrid can now leverage its two lakh tower network across the length and breadth of the country and help telecom companies provide voice and data services to every village in the country,” said PGCIL CGM (Telecom) D Yadav.


Powergrid will offer a “one-stop solution for telecom operators with highly reliable power supply, tower-to-host antenna and basic equipment, backhauling of fiber on the transmission line and unmatched reach” even in remote areas, leveraging the company’s widespread cell tower infrastructure, the company said officials.


Regarding the data center, Mohan said: “The CERC has granted Powergrid approval to build and operate data centers under PowerTel, utilizing surplus substation land.


“The first data center as a pilot is to be built near Delhi with a capacity of 250 racks and ramped up to 1000 racks. Detailed business models for data centers are being worked out.”


The size of the telecom business is relatively small in Powergrid’s total revenue, but “the business environment is very conducive to Leapfrog,” Mohan said.


Referring to the National Long-Distance Operation, Mohan said, “Since we have the interconnection agreements with the neighboring countries like Nepal, Bangladesh and Bhutan, we use them to deliver fiber to those countries.”


Powergrid owns a large electricity transmission grid of 1.76 lakh km to support energy supply across the country.