SME Times News Bureau | 24 Sep, 2020
The government proposes to expand the asset monetisation programme of
transmission utility Power Grid Corporation by including even the
Regulated Tariff Mechanism based assets for sale under the InvlT model.
An
InvIT is a pool of money collected from investors to run operational
infrastructure projects in return for a regular yield to its unit
holders.
Government sources said that the Core Group of
Secretaries on Asset Monetization has asked Power Grid to test the
market for both Regulated Tariff Mechanism & Tariff Based
Competitive Bidding assets worth Rs 10,000 crore each in two phases.
The
fresh directive is based on suggestions given by the NITI Aayog to
bundle Regulated Tariff Mechanism (RTM) assets (which form 95% of
PGCIL's asset base) along with TBCB assets to improve the viability of
the package up for monetisation under the InvIT model.
Sources
said that a concept note on asset monetisation and approvals would be
taken by October and the entire process would be completed by January
2021.
The Cabinet Committee on Economic Affairs has already given
its approval to the monetization of Power Grid Corporation of India's
TBCB assets held through a special purpose vehicle (SPV), through an
Infrastructure Investment Trust (InvIT).
Now, even RTM assets may be bundled in the package to enhance the quantum of the asset monetisation exercise.
The
government is looking at asset monetisation for Power Grid so that it's
proceeds could be utilized for fresh investment in the transmission
network expansion and other capital schemes of the company.
Monetisation
of the first block of eligible SPVs is expected to be completed in FY
2020-21. Based on the experience gained and depending upon the
eligibility for monetization further monetization shall be carried out
in future, as per the directives and targets fixed by the Government of
India.
