PowerGrid Infrastructure Investment Trust (PGInvIT) seeks to generate revenue from non-power transmission activities as well, it said in a recent investor presentation.
Such revenue will be sought from various sources that include leasing of optical ground wire and transmission towers, PGInvIT said. As of March 31, 2022, the portfolio of InvIT included nearly 2,000 km of optical ground wire (OPGW).
PGInvIT, it may be recalled, is India’s first infrastructure investment trust from a government entity, sponsored by a Central PSU, which, in this case, is Power Grid Corporation of India Ltd.
As of March 31, 2022, PGInvIT had five operational power transmission assets that included 11 transmission lines aggregating around 3,699 ckm. The portfolio also included three substations with a total transformation capacity of 6,630 MVA. The total gross block of PGInvIT’s portfolio stood at Rs.7,555 crore, as of March 31, 2022.
Meanwhile, PGInvIT is looking forward to augment its portfolio through sale of operational TBCB assets by its sponsor, PGCIL.
It may be mentioned that the Cabinet Committee on Economic Affairs (CCEA) has permitted PGCIL to monetize its TBCB subsidiaries through the InvIT route. With this, PGInvIT stands to benefit as it would be preferred route of monetization for PGCIL.
In the ongoing fiscal year, FY23, PGCIL has targeted to monetize Rs.7,500 crore through sale of its operational TBCB projects.
The five projects under PGInvIT’s current portfolio include:
- Powergrid Vizag Transmission Ltd (PVTL)
- Powergrid Kala Amb Transmission Ltd (PKATL)
- Powergrid Parli Transmission Ltd (PPTL)
- Powergrid Warora Transmission Ltd (PWTL)
- Powergrid Jabalpur Transmission Ltd (PJTL)
PGInvIT has acquired 100 per cent equity stake in PVTL while it has 74 per cent equity stake in the remaining four projects. The remaining 26 per cent equity stake in the four projects can be acquired during the period July 2022 to January 2024, which is when PGCIL completes the mandatory lock-in period of three years of minimum 26 per cent equity stake in its TBCB subsidiaries. It may be mentioned that in the case of PVTL, the balance 26 per cent equity stake was acquired by PGInvIT from PGCIL in March 2022, on completion of PGCIL’s equity lock-in period.
RTM project
It may be mentioned that CERC has granted a separate transmission licence to PKATL for developing an additional element, under its operational transmission scheme. This additional element is a 125 MVAR 420kV bus reactor at Kala Amb. Costing around Rs.42.70 crore, this element is expected to be commissioned within 15 months. T&D India, in October 2021, had reported that CERC ruled that a separate transmission licence be sought for this additional element.
Featured photograph (source: Sterlite Power) is for representation only
