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Monetization through Securitization of Cash Flows as an Innovative Financing Mechanism for development of Infrastructure Projects in India

Ref C5_10594_2026 • 2026
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Summary

India’s power sector is undergoing an unprecedented transformation, driven by rising energy demand, technological advancements, and the government’s commitment to achieving a sustainable and resilient grid. Significant capital investment is envisaged for capital intensive infrastructure development. Traditional financing mechanisms increasingly face constraints from sectoral exposure limits and prolonged capital lock-in periods. This paper presents a comprehensive case study of successfully monetizing operational transmission assets through securitization of future receivables, enabling a major transmission utility to raise approx. Indian

Rupee (INR) 150 billion at competitive rates vs traditional lending while retaining full ownership and operational control. The transaction structure, based on Special Purpose Vehicle

(SPV) architecture with waterfall payment mechanisms and credit enhancement layers, demonstrates a replicable model for infrastructure financing. Financial analysis reveals raising funds at competitive rates reducing Weighted Average Cost of Capital (WACC) and improved

Return on Equity (ROE) and accelerated capital recycling for new project bidding. The paper examines structuring, execution, and outcomes of the monetization initiative, and discuss its replicability for other infrastructure sectors facing similar financing challenges.

Additional informations

Publication type Session Materials
Reference C5_10594_2026
Publication year
Publisher CIGRE
Country India
Study committees
File size 409 KB
Price for non member 30 €
Price for member 30 €

Authors

YADAV* Deepak - Power Grid Corporation of India Limited, India; SARMA B Anantha - Power Grid Corporation of India Limited, India; JAIN Amit Kr - Grid-India, INDIA; PANDEY Pankaj - Power Grid Corporation of India Limited, India; BHARGAVA Amit - Power Grid Corporation of India Limited, India

Keywords

Monetization via Securitization of Cash Flows, Competitive Fundraising

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Monetization through Securitization of Cash Flows as an Innovative Financing Mechanism for development of Infrastructure Projects in India