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Govt Expects Rs 39,832 Cr From Sale of Power Generation Assets By FY25 – EQ Mag Pro

Govt Expects Rs 39,832 Cr From Sale of Power Generation Assets By FY25 – EQ Mag Pro

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Government’s think tank NITI Aayog has valued state-owned power generation assets at Rs 39,832 crore which can be monetised by the financial year 2025

Government’s think tank NITI Aayog has valued state-owned power generation assets at Rs 39,832 crore which can be monetised by the financial year 2025, according to the National Monetisation Pipeline released on Monday.

Finance Minister Nirmala Sitharaman on Monday announced a Rs 6 lakh crore National Monetisation Pipeline (NMP) that will look to unlock value in infrastructure assets across sectors ranging from power to road and railways.

The assets considered for monetisation over FY 2022-25 aggregate to 6.0 gigawatt (GW). Out of which, about 3.5 GW is from hydel assets and about 2.5 GW is renewable energy (RE) assets which includes solar and wind. The total value of assets considered for monetisation is estimated at Rs 39,832 crore over FY 2022-25, the NMP document said.

Together, 6.0 GW asset base considered for monetisation constitute about 6 per cent of the total generation capacity under central PSUs. Key entities whose assets have been considered are NHPC, NTPC and SJVNL who own bulk of the hydel assets and NTPC (under Ministry of Power) and NLC (under Ministry of Coal) that own renewable assets.

“The book value approach has been adopted to determine an indicative value of the above-mentioned assets varying based on the vintage value of the asset,” it said.

The average realisation value for hydel assets has been tentatively considered as Rs 7.5 crore per MW, while the average realisation value for solar assets has been tentatively considered as Rs 5.5 crore per MW.

The Union Budget 2021-22 had identified monetisation of operating public infrastructure assets as a key means for sustainable infrastructure financing.

Source : Pti

Anand Gupta Editor - EQ Int'l Media Network