(FE)
Power Grid Corporation of India (PGCIL) plans to set up an Infrastructure Investment Trust (InvIT) by the end of FY20 to unlock value in some of its transmission assets.The company took an in-principle board approval to set up the InvIT on October 1.
Sources close to the development told Financial Express that the company was in the process of appointing a consultant to advise on the InvIT. “To begin with, the company will look at monetisation of transmission assets of Rs 10,000 crore, and depending on the initial response, they will decide on the future course of action,” sources said.
The InvIT will help India’s monopoly power transmission infrastructure operator to reduce its debt burden while increasing the dividend payout to the shareholders. The nature of the InvIT, whether it will be a public listed or private InvIT, will be decided after discussions with the consultants, the sources added. While the operation and management will stay with the company, PGCIL will have to retain certain stake in the assets, as per the market regulator Sebi guidelines on InvIT.
