New Delhi, Sep 26 (IANS): The power ministry will seek cabinet approval for independent transmission regulator status for the Power System Operation Corporation Limited (POSOCO), Power Minister Jyotiraditya Scindia said Thursday.

"We are looking for private sector participation in the transmission sector, therefore there is a need for a regulator which POSOCO cannot perform if it works as a subsidiary of Power Grid," Scindia said at a press conference here.

POSOCO is currently an arm of state-run Power Grid Corp. As an autonomous body, the organisation will act as a regulator for the transmission grid, maintaining grid discipline and discouraging overdrawal of electricity by the states.

The ministry will also approach the cabinet for fixing the price of gas for power plants at $5 per mmBtu (million British thermal unit), Scindia said.

The power sector currently sources domestic gas at $4.2 per mmBtu, but the price is expected to double from April 1, 2014, when the new gas price policy based on the recommendations the C. Rangarajan committee, comes into effect.