The change in plan comes in the backdrop of the lnvlT route facing issues regarding transparent price discovery, and those of taxation involving GST, capital gains, and stamp duty. This assumes significance given that the power sector comprises 14% of the total assets on offer under the ₹6 trillion NMP announced in August 2021 from leasing of public assets.

Of these, power transmission assets total 28,608 circuit km for monetization, accounting for ₹45,200 crore.

"PGCIL asset monetisation through InvIT route will not be pursued in the current financial year, given that the cost of funds is higher through it. Now, monetisation of receivables from project- specific special purpose vehicles (SPV) through securitization model is being looked at," said one of the two people cited above.

InvITs are trusts that manage income-generating infrastructure assets, typically offering investors a regular yield and a liquid method of investing in infrastructure projects. The InvIT route was proposed by the government as a fundraising route for state-run companies to manage their funding requirements without having to depend on government support.

Queries emailed to the spokespersons of PGCIL and union ministries of power and finance on Tuesday afternoon remained unanswered till press time.

PGCIL is the first state-owned companies to have offered an InvIT as part of the government's brownfield asset monetization strategy, wherein the PSU monetised its five tariff-based competitive bidding (TBCB) assets having an enterprise value of ₹10,384 crore. PGCIL's transmission network has 173,70 circuit km of transmission lines.

The monetisation through securitization model has gained traction with state-run SJVNL securitising the cash flow of India's largest hydropower project, Nathpa Jhakri, with Bank of Baroda for a 15-year period under the NMP for an upfront payment of ₹2,000 crore, as reported by Mint earlier.