India’s Wealthiest State May Offer Revenue Sharing from Power Lines to Investors
Maharashtra, India’s wealthiest state, is considering tokenizing its power transmission assets to provide funding for new energy investments.
Maharashtra is exploring tokenizing a portion of its state-owned power transmission lines on the blockchain and opening up a share of the revenue generated from these assets to investors. According to the proposal, the new capital raised could be used for new transmission lines and solar energy storage hubs.
Praveen Pardeshi, CEO of the state government-affiliated Maharashtra Institution for Transformation (MITRA) and chief economic advisor to the state’s chief minister, explained the proposal at “The Box Launch” event held in Mumbai. Pardeshi stated that Maharashtra is working on a policy suitable for tokenizing public assets.
At the center of the proposal is the state’s power transmission infrastructure. Pardeshi noted that instead of the entire network, 40% to 50% of the transmission lines could be tokenized. Investors holding these tokens would be able to receive a portion of the revenue generated by the Maharashtra Transco Company from the respective lines.
Token Proceeds to be Channeled into New Energy Infrastructure
According to Pardeshi, the new capital raised from the token sale could be used to build more power transmission lines and establish solar energy storage hubs. Although Maharashtra has a high production surplus in solar energy, it lacks sufficient grid capacity to transport this electricity to areas where it is needed.
The state has a population of approximately 130 million and accounts for about 14% of India’s nominal gross domestic product. The global market for tokenized real-world assets (RWAs) stands at approximately $38 billion, according to data from RWA.xyz. The majority of this market consists of U.S. Treasuries and private credit products.
Maharashtra is also working on a draft of the DELTA Act for blockchain-based real estate tokenization. However, the law has not yet come into force, and there is no finalized issuance plan for power transmission tokens. Pardeshi stated that tokenization does not mean the wholesale privatization of public assets but rather allows more people to participate in infrastructure financing while maintaining state control.