With InvIT ahead, Power Grid should  reveal cash usage  policy

Power Grid Corp. of India Ltd has received the government’s approval to monetize its assets through infrastructure investment trust (InvIT). The approval pertains to monetizing projects won through tariff-based competitive bidding.

Last year, the board of the company gave in-principle approval to raise up to ₹10,000 crore through InvITs. It is not clear how many transmission projects will be part of the initial InvIT.

As of the last fiscal year, Power Grid had commissioned eight transmission projects won through tariff-based competitive bidding. According to analysts, five of these projects have been operating for more than a year and may be included in the InvIT, helping Power Grid free-up sizeable equity capital. “It is possible that five assets with ₹2,000 crore equity are monetized,” Jefferies India Pvt. Ltd said in a note.