The Cabinet Committee has approved monetisation of assets of POWERGRID, a Public Sector Undertaking (PSU) under Ministry of Power, through Infrastructure Investment Trust (InvIT) model.
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Key-Points
This is the first time any PSU in Power Sector will undertake asset recycling by monetising its assets through Infrastructure Investment Trust model and using the proceeds to fund the new and under-construction capital projects.
This approval would help POWERGRID to monetise in the first lot, assets with gross block value of more than 7000 crore.
These assets, which are mainly High Voltage Transmission lines and substations, are held by POWERGRID in form of Special Purpose Vehicles (SPVs).
POWERGRID, a public limited company under the administrative control of the Ministry of Power, Government of India, started its commercial operation in the year 1992-93 and is today, a Maharatna company, engaged in the business of power transmission.
