Page 20 - Index

Well-Positioned to Grow Sustainably in the Long Term
PGInvIT is well-placed in the industry with a robust portfolio, highly experienced and industry leading Sponsor and its sound business model with high cash flows and favourable capital structure. We will continue to build on these to drive business growth and returns to Unitholders.
STRONG LINEAGE AND SUPPORT OF POWERGRID, OUR SPONSOR AND PROJECT MANAGER
POWERGRID’s three-plus decades of experience and expertise in power transmission and its success in the TBCB mechanism provides us significant competitive advantage. Occupying a key position in the government’s plans for developing India’s power sector and having accorded the Maharatna status, it enjoys strategic and operational flexibility and enhanced financial autonomy to take investment decisions. We stand to benefit from POWERGRID’s expertise in O&M of transmission systems, who had implemented our IPAs and has been carrying out their O&M from their respective CODs. Their obligation to own minimum 15% of InvIT units for a period of three years also ensures their continued interest in the Trust.
CONSISTENT AND STABLE CASH FLOWS SUPPORTED BY AN ESTABLISHED REGULATORY FRAMEWORK
Indian power transmission segment is well regulated with an established framework, which provides significant risk mitigation provisions such as availability-based payment structure, minimal counterparty risk and strong payment security mechanism. Apart from these, each of our asset has been contracted for a long-term TSA of 35 years, with minimal risk of transmission charges reset and also earn incentives on achieving higher than targeted availability. Long residual life and perpetual ownership of assets provide visibility for stable, consistent and predictable cash flows.
18 Annual Report 2021-22