Power Grid asset monetisation to fetch Rs 20,000 crore to the government

In what could help government raise Rs 20,000 crore by coming January, the core group of secretaries on asset monetisation has decided to bundle Regulated Tariff Mechanism (RTM) asset and Tariff Based Competitive Bidding (TBCB) asset of Power Grid Corporation of India Limited, in two phases.

The suggestion was proposed by Niti Aayog, in a recent meeting of the core group of secretaries, headed by the cabinet secretary, according to people in the know. The government has tasked the Power Ministry to oversee this entire process.

The government is targeting to unlock optimal value from these public sector assets which have not yielded a potential return. Asset monetisation involves the creation of new sources of revenues by unlocking of the value of unutilized public assets.

CNBC-TV18 has learnt that in the case of Power Grid, the monetisation exercise will happen in two phases of Rs 10,000 crore each and for this, the concept papers will be ready by October end.

The cabinet had earlier approved monetisation of Power Grid’s Tariff Based Competitive Bidding asset worth Rs 7,164 crore via InvIT.

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