The Cabinet Committee on Economic Affairs (CCEA) on Tuesday allowed state-owned power transmission company Power Grid Corporation of India (PGCIL) to monetise its assets by floating an Infrastructure Investment Trust (InvIT). This will make PGCIL the first such public sector utility in India to issue InvITs.
The CCEA said, in the first tranche, PGCIL would monetise five assets of gross block of Rs 7,000 crore. “These assets, which are mainly high voltage transmission lines and substations, are held by PGCIL in the form of special purpose vehicles (SPVs). The proceeds from the asset monetisation would be deployed by PGCIL in their new and under-construction projects,” said a statement by the CCEA.
