‘Working power transmission projects now attractive assets’

Operational power transmission assets in India are emerging as an attractive asset category for the private sector in infrastructure bond market, India Ratings has said. “Power transmission is emerging as an attractive asset category for the private sector... operational transmission projects will emerge as ideal candidates for infra bond markets,” the rating agency said. The government, realising the need for investments, has been streamlining policies and processes in the transmission sector, it added. Inter-state transmission projects are awarded through tariff-based competitive bidding. Transmission assets may create appetite among investors and it is a class of asset which is expected to deepen the infra bond market, given its stable and availability nature of revenue and a long licence tenor, India Ratings said. Though the counter-parties, including generation and distribution utilities, may have stressed financial health, the agency believes that transmission assets may not suffer as significantly as generating companies.