Under Power Sector Reform Programme, Government of Madhya Pradesh has unbundled the M.P. State Electricity Board into five wholly owned State Government Companies, out of which one each has been independently assigned Electricity Generation and Transmission functions and the balance three are Distribution companies responsible for electricity distribution in their respective jurisdiction. M.P. Power Transmission Company Ltd. (MPPTCL) is one of such five companies carved out of MPSEB to undertake the activities relating to electricity transmission within the State of M.P.

Subsequently, in May'2006 one more Company, namely MP Power Trading Co. Ltd. has been carved out of MPSEB to look after trading of Power and other associated activities.

M.P. Power Transmission Company was incorporated on 22nd November, 2001 and it formally began its operations under an Operation & Management Agreement executed with MPSEB on 1st July, 2002, which provided for undertaking all activities relating to intra-state transmission of electricity for and on behalf of MPSEB. Further, in exercise of the powers conferred by sub-section (1) of Section 39 of Electricity Act, 2003, GoMP has nominated this Company as the State Transmission Utility w.e.f. 01.06.2004.

Subsequently, vide GoMP notification No.3679/FRS/12/13/2002, dated 31.05.2005, the Company has been provided functional autonomy with effect from 01.06.2005.Thus, with effect from 01.06.2005, the Company has assumed the functions of intra-state transmission of electricity, State Transmission Utility and State Load Despatch Centre as its own business and not as an Agent of Madhya Pradesh State Electricity Board. The Registrar of Companies, on 16.07.2002, has issued the Certificate for commencement of business to MPPTCL.

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