- The Cabinet Committee on Economic Affairs has allowed Power Grid Corporation of India Limited (POWERGRID) to undertake monetization of its Tariff Based Competitive Bidding (TBCB) assets.
- The approval covers assets held in existing Special Purpose Vehicle (SPVs), through Infrastructure Investment Trust (InvIT).
- Proceeds from the asset monetization could be utilized for fresh investment in the transmission network expansion and other capital schemes of the company.
- In the first block, POWERGRID would be able to monetize 5 TBCB assets of the gross block of ₹7,164 crore.
- The CCEA approval allows POWERGRID to monetize assets, including those which are either under construction or shall be acquired by the company in future.
- This monetization will be as per the directives and targets fixed by the centre.
- The assets proposed for monetization through InvlT are operational assets proposed to be managed by the existing manpower of POWERGRID 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.
- 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.
- The Company, along with its wholly owned subsidiaries acquired through the Tariff Based Competitive Bidding (TBCB)process,owns and operates a pan India transmission network.
- The Company meets its fund requirement for its Capital Expenditure (CAPEX) through its internal accruals and debt.
- The Budget 2019-20 emphasized investment led growth and indicated that new and innovative financial instruments including Infrastructure Investment Trusts (lnvITs), have been launched as part of the brown field asset monetization strategy for augmenting infrastructure investment.
