Govt working on plan to securitise revenue of central power plants
The government is working on a proposal to escrow revenue from existing central power plants to utilise it as an upfront amount for new projects. It is also considering listing subsidiaries of power PSUs like NTPC NSE -0.04 % and gradually offloading up to 49% stake in them, a senior official said.
As per the proposal, revenue of ongoing projects can be escrowed in the name of successful bidders for 10-15 years.
While the buyers get assured income for a long term, the power companies get to invest the amount left after debt servicing and operation and maintenance costs in new projects, the official said.
