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India’s power and power transmission sector are set to witness accelerated growth in the coming years. Fast growing Indian economy, rapid urbanisation, increasing energy access; and initiatives by the Government of India (GoI) towards clean energy transition; reforms in transmission planning; cross- border interconnections and improving financial health of distribution sector are fuelling the growth. The National Monetisation Pipeline (NMP), formulated by the GoI with a target to monetise ` 6 trillion of brownfield revenue earning operational infrastructure assets across different sectors, including power transmission, during FY2022 to FY2025 is aimed at kickstarting the vital investment cycle.
POWERGRID Infrastructure Investment Trust (PGInvIT) Initial Public Offer in 2021 was a landmark transaction through which five transmission assets of POWERGRID were monetised. Set up by Power Grid Corporation of India Limited, a Maharatna CPSE and India’s largest transmission player, PGInvIT is India’s first InvT by a CPSE/Government entity. In spite of it being launched at the peak of the difficult second wave of the pandemic, the PGInvIT IPO was a resounding success, winning global accolades.
We endeavour to own, construct, operate, maintain and invest as an InvIT in power projects and power transmission assets in India. Our initial portfolio comprises fully operational and revenue-generating assets housed in five SPVs, with a sound operational track record and high availability.
The regulatory framework under which our assets operate provide assurance for long-term visibility, consistency and stability in their cash flows. The experience and expertise of POWERGRID in operating and maintaining transmission systems, and its large pipeline of TBCB assets with a yearly monetisation target under NMP provides us a significant competitive advantage.
Our business strategies, structured around a robust business model, value accretive growth and an efficient capital structure are underpinned by the backing of our experienced stakeholders as well as a strong balance sheet position with high cash flows and low leverage. This positions us attractively for acquiring new assets without substantial dilution to unitholders’ interests.
We are well-placed to deliver consistent, stable and visible returns to our unitholders riding on the power of AAA - Assets, Assurance and Advantage.
2 Annual Report 2021-22