By P.R. Venkat
Power Grid Corp. of India Ltd. will monetize assets worth more than 70 billion rupees ($949.1 million) and use the proceeds to fund its new and under construction projects.
The approval to the state-run company was given by the Union cabinet, a government statement said late Tuesday.
The assets to be monetized include high voltage transmission lines and substations owned by Power Grid in the form of special purpose vehicles.
Asset recycling is a key strategy of the Indian government as a move to allow state-run units to raise capital from operational assets through an Infrastructure Investment Trust.
Power Grid is expected to attract both domestic as well as global investors including sovereign wealth funds in the trust, the statement said.
The government intends to carry out further monetization in future, it said.
The state-run company has a capital expenditure plan of INR205 billion for the next two fiscal years that began in April.
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