MoP issues guiding principles for monetisation of transmission assets in the public sector through AOMT based PPP model

The Ministry of Power (MoP) has issued guiding principles for monetisation of transmission assets in the public sector through acquire, operate, maintain and transfer (AOMT) based public-private partnership (PPP) model.

The guiding principles are intended to enable the implementation of monetisation program for identified transmission assets of the state government-owned transmission undertakings and central public sector enterprises /public sector undertakings/other government organisations in the central sector who may adopt this framework with the approval of the respective competent authority. Under the AOMT model, the entire shareholding of the special purpose vehicle would be transferred to an investor entity, as part of monetisation and bought back at a nominal cost of Rs 1 at the end of a stipulated transaction period. Such transaction period may be specified in the transfer agreement and be coterminous with the residual economic life of the asset. For the stipulated transaction period, the investor entity will undertake operations and maintenance of the transmission network including the right to earn transmission charges subject to provisions of the transmission service agreement.

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