+
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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

Syrma SGS Elemaster Opens High-Reliability Electronics Facility

Syrma SGS Technology and Elemaster Group have inaugurated a new high-reliability electronics manufacturing facility in Bengaluru through their joint venture, Syrma SGS Elemaster Private Limited.The facility aims to strengthen India’s advanced electronics manufacturing capabilities and support customers across domestic and global markets, particularly in sectors requiring high quality, reliability and stringent manufacturing standards.Located in the Bommasandra Industrial Area, the 20,000 sq. ft. facility is equipped with advanced Surface Mount Technology (SMT), Through-Hole Technology (THT) ..

Next Story
Real Estate

UrbanVault Expands Chennai Workspace Portfolio with 100,000 Sq. Ft.

UrbanVault has expanded into Chennai with approximately 100,000 sq. ft. of managed workspace across three properties, strengthening its presence in India’s flexible workspace market.The company’s Chennai portfolio includes Olympia Teknos and UV IPL in Guindy, and Ceebros Chambers on Velachery Main Road. The expansion marks UrbanVault’s entry into its seventh city, taking its national footprint to more than 3 million sq. ft. across 80+ centres.UrbanVault expects its annual revenue to cross Rs 350 crore in FY27, supported by expansion across major business hubs and rising demand for manage..

Next Story
Real Estate

LML Realty Launches Digital Platform for Custom Factories

LML Realty has launched ‘Your Factory’, a digital platform that enables businesses to configure, customise and order built-to-suit factories online. The platform combines plot selection, factory specifications, pricing and development into a single digital interface.Businesses can select plot sizes ranging from 500 sq. yd. to 10 acres and customise requirements such as factory size, height, structure, crane provisions and power needs. The platform provides instant quotations, allowing users to view configurations and pricing while designing their facilities.Pricing for the built-to-suit fa..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code