Federal cabinet approves major restructuring of NTDC into two new entities
The Federal Cabinet has approved the restructuring of the National Transmission and Despatch Company (NTDC), which will split into two entities: National Grid Company Projects (NGC Projects) and National Grid Company Assets (NGC Assets). The approval came through a Power Division summary on November 6, 2024, Business Recorder reported, citing official sources.
NTDC, originally established in 1998 as part of the unbundling of WAPDA, has long overseen the construction and maintenance of high-voltage transmission lines and grid stations across Pakistan. However, over the years, the company has encountered issues, including outdated business processes, inefficient management, and persistent project delays, with average delays stretching up to 7-8 years.
The Power Division indicated that the creation of NGC Projects will focus on project preparation and implementation, while NGC Assets will handle transmission services and asset management.
The new setup will help alleviate some of NTDC’s challenges by improving functional efficiencies and ensuring better oversight, following a strategic plan developed by a committee formed by Prime Minister Shehbaz Sharif in April 2024.
As part of broader structural changes, the NTDC’s system operator functions will merge into an Independent System and Market Operator (ISMO) under the IMF-supported plan, while Central Power Purchasing Company-Guarantee (CPPA-G) will integrate with the National Power Control Center (NPCC).
Expected to be fully operational by December 2024, this restructuring aims to reduce NTDC’s monopoly, enhance independence, and increase oversight of Pakistan’s power transmission and market operations.