The union Home Ministry will focus to accumulate over rupees 45,200 crore from monetising power transmission assets by FY 2025 as part of its ambitious asset monetisation plan.
Nirmala Sitharaman who is Finance Minister of the country has announced a rupees 6 lakh crore National Monetisation Pipeline (NMP) on Monday.
The NMP will look into unlock the aggregate in infrastructure assets across several sectors ranging from power to road and railways.
The transmission assets are considered for monetisation during FY 2022-25 values to 28,608 circuit (ckt) kms.
These monetising assets will also include the transmission assets of 400 KV and above of PowerGrid Corporation of India Limited (PGCIL).
The NMP document said that the aggregate value of the transmission assets considered for monetisation is estimated at rupees 45,200 crore over FY 2022-25.
During FY22, the transmission assets considered with symbolic value of rupees 7,700 crore.
Transmission Assets that are to be monetized during FY22 also includes the PGCIL's InvIT issue transaction for that it has already been concluded during first quarter of FY22.
The document said, "FY23, FY24 and FY25 -- Aggregate length of 23,734 ckt kms has been considered for monetisation during this period."
The available monetisation potential in this category of long-distance transmission assets includes a blend of Tariff Based Competitive Bidding (TBCB) and Regulated Tariff Mechanism (RTM) assets.
NMP document said that most of the TBCB assets of PGCIL are expected to be bought under the PGCIL InvIT over a period of time also including several additional assets from the RTM category which are critical to achieve the required scale in monetisation.
The monetisating of assets considered for over FY 2022-25 depends on factors such as the transmission charges, asset availability and asset blend.
The symbolic monetisation values of the transmission assets has been considered based on a factor of rupees 1.58 crore per ckt km.
The Union Budget 22 had determined that the monetisation of operating public infrastructure assets as a key means for viable infrastructure financing.