
The Union power ministry is addressing state governments' concerns regarding the monetization of transmission assets. States have raised questions about revenue certainty for Regulated Tariff Mechanism (RTM) assets, tax implications, and payment security. The ministry assured that tariffs will ensure reasonable revenue for investors and identified a demerger model as tax-efficient. The government's monetization plan, based on an Acquire, Operate, Maintain and Transfer (AOMT) model, involves asset identification, SPV creation, and regulatory licensing.