Government expects Rs 39,832 crore from sale of power generation assets by fiscal year 25, Energy News, ET EnergyWorld

Government think tank NITI Aayog valued state-owned power generation assets at Rs 39,832 crore, which can be monetized by fiscal year 2025, according to the National Monetization Pipeline released on Monday. Finance Minister Nirmala Sitharaman on Monday announced a Rs 6 lakh crore National Monetization Pipeline (NMP) that will seek to unlock value in infrastructure assets in sectors ranging from electricity to roads and utilities. railroads.

Assets considered for monetization in fiscal year 2022-25 are 6.0 gigawatts (GW). Of which around 3.5 GW are from hydel assets and around 2.5 GW are from renewable energy (RE) assets, which include solar and wind power. The total value of assets considered for monetization is estimated at Rs 39,832 crore for the 2022-25 fiscal year, according to the NMP document.

Together, the 6.0 GW asset base considered for monetization constitutes approximately 6% of total generating capacity under central PSUs. The main entities whose assets have been taken into account are NHPC, NTPC and SJVNL which hold most of the assets of hydel and NTPC (under the Ministry of Energy) and NLC (under the Ministry of Coal) which own renewable assets.

“The book value approach has been adopted to determine an indicative value of the aforementioned assets varying according to the original value of the asset,” he said.

The average realizable value of hydel assets has been tentatively considered to be Rs 7.5 crore per MW, while the average realizable value for solar assets has been tentatively taken to be Rs 5.5 crore per MW.

The Union budget 2021-2022 identified the monetization of operating public infrastructure assets as a key means for the sustainable financing of infrastructure.