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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," an official statement said.
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," the statement added.
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