The Central Electricity Authority (CEA), under the Ministry of Power (MoP), on November 4, 2025, issued a concept note titled “Revenue Certainty & Tax Incidence during Monetisation of Transmission Asset” to key regulators and stakeholders.
The note outlines the roadmap for monetising public transmission assets under the Acquire-Operate-Maintain-Transfer (AOMT) model and emphasises three main policy levers: firstly, establishing tariff and revenue certainty for monetised intra-state and inter-state transmission assets, given concerns over cash-flow predictability under the Regulated Tariff Mechanism (RTM).
Secondly, it highlights the importance of clarity on tax incidence, including capital gains and stamp duty implications, when assets are de-merged, transferred to special purpose vehicles (SPVs), or handed over to private operators.
Thirdly, it calls for regulatory and process enhancements such as asset valuation, technical due-diligence, legal structuring, and transparent bidding frameworks to ensure investor confidence and efficient monetisation.
The concept note serves as a precursor to guidelines that the Forum of Regulators and State Electricity Regulatory Commissions will adopt, aiming to unlock private capital, improve operational efficiency and strengthen the institutional framework for transmission infrastructure monetisation on a scale consistent with India’s infrastructure financing needs.
