+
Centre floats guidelines to scale up power sector infra
POWER & RENEWABLE ENERGY

Centre floats guidelines to scale up power sector infra

The Power Ministry has floated guiding principles for State governments to identify and monetise brownfield transmission assets in a bid to scale up power sector infrastructure.

The rationale is that States have significant potential for asset monetisation by leveraging brownfield transmission projects and mobilising proceeds for new infrastructure projects, boosting their economic prospects. It suggested the Acquire, Operate, Maintain and Transfer (AOMT) based Public Private Partnership model.

This comes after the Centre monetised Power Grid’s (PGCIL) five transmission projects in May last year, raising more than ?7,700 crore. For this, PGCIL had set up an InvIT (PowerGrid Infrastructure Investment Trust, or PGInvIT) in January 2021. In FY22, PGCIL raised ?8,370 crore through monetisation and the target for FY23 is ?6,860 crore.

As of March 2020, India’s total transmission line length network stood at around 7,13,400 circuit kms (66 kV). “Brownfield seasoned transmission assets in particular have demonstrated significant investor appetite from long-term institutional investors owing to underlying asset characteristics and availability-based business model as evidenced by successful InvlT based monetisation for transmission assets in public as well as private sector,” Power Ministry said.

Under the AOMT model, the SPV, which will own the transmission asset, is bought by the selected investor for a prescribed time with associated rights and duties against payment of upfront lump sum amount.

The Power Ministry has floated guiding principles for State governments to identify and monetise brownfield transmission assets in a bid to scale up power sector infrastructure. The rationale is that States have significant potential for asset monetisation by leveraging brownfield transmission projects and mobilising proceeds for new infrastructure projects, boosting their economic prospects. It suggested the Acquire, Operate, Maintain and Transfer (AOMT) based Public Private Partnership model. This comes after the Centre monetised Power Grid’s (PGCIL) five transmission projects in May last year, raising more than ?7,700 crore. For this, PGCIL had set up an InvIT (PowerGrid Infrastructure Investment Trust, or PGInvIT) in January 2021. In FY22, PGCIL raised ?8,370 crore through monetisation and the target for FY23 is ?6,860 crore. As of March 2020, India’s total transmission line length network stood at around 7,13,400 circuit kms (66 kV). “Brownfield seasoned transmission assets in particular have demonstrated significant investor appetite from long-term institutional investors owing to underlying asset characteristics and availability-based business model as evidenced by successful InvlT based monetisation for transmission assets in public as well as private sector,” Power Ministry said. Under the AOMT model, the SPV, which will own the transmission asset, is bought by the selected investor for a prescribed time with associated rights and duties against payment of upfront lump sum amount.

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App