CCEA okays asset monetisation of Power Grid arms via InvIT
Sep 8, 2020
New Delhi: The Cabinet Committee on Economic Affairs has given its approval to the monetisation of Power Grid Corporation of India’s Tariff Based Competitive Bidding (TBCB) assets, held through a special purpose vehicle (SPV), through through an Infrastructure Investment Trust (InvIT).
The CCEA has also allowed Power Grid to monetise through InvIT, its other TBCB SPVs including those which are either under construction or shall be acquired by the company in future, as per the directives and targets fixed by the Centre, an official statement said.
“The approval would facilitate Power Grid, a Central Public Sector Enterprise under Ministry of Power, to undertake asset monetisation of its identified TBCB transmission assets through InvIT, so that the proceeds from the asset monetisation could be utilised for fresh investment in the transmission network expansion and other capital schemes of the company,” it said.
In the first block, Power Grid would be able to monetise five TBCB assets of gross block of Rs 7,164 crore.
As per the statement, the premium generated from the sale would augment the net worth of the state-run company.
The assets proposed for monetisation through InvIT are operational assets proposed to be managed by the existing manpower of Power Grid already deputed for this purpose and therefore no additional employment generation is envisaged with regard to them.
However, additional employment opportunities are likely in services incidental to InvlT, such as merchant banking, legal advisory, trusteeship, financial and taxation consultancy, valuation, printing, advertisement and in allied activities.
Monetisation of the first block of eligible TBCB SPVs is expected to be completed in FY 2020-21. Based on the experience gained and depending upon the eligibility for monetisation of TBCB SPVs, further monetisation shall be carried out in future, as per the directives and targets fixed by the Centre, said the official statement.IANS