Maharashtra, India’s wealthiest state, is embarking on an innovative journey to tokenize its government-owned assets, a move aimed at enhancing infrastructure funding and facilitating the growth of renewable energy. This ambitious plan was revealed by Praveen Pardeshi, CEO of the state policy body MITRA, at a recent event hosted by the real estate tokenization firm RealX in Mumbai.
The primary focus of this initiative is the state’s electricity transmission infrastructure, which generates a steady stream of income but has capital tied up in it that is not easily redeployed. By tokenizing approximately 40% to 50% of this infrastructure, Maharashtra aims to open the door for new investments while ensuring that token holders receive a share of the income from these assets. The funds raised will be channeled into constructing new transmission lines and solar storage solutions, critical for managing the state’s surplus solar power.
Pardeshi emphasized that this initiative does not equate to privatization. Instead, it aims to circulate capital among a larger pool of investors. He cited the successful tokenization of Express Towers, a commercial building in Mumbai, as a practical example of how this model can effectively work.
The pressing need for better electricity pricing in Maharashtra underscores the importance of this project. Currently, distribution companies pay between 16 to 18 rupees per unit during peak demand, while surplus power is available on exchanges for as little as 2 paisa. Improved transmission and storage, funded through tokenization, could help bridge this alarming gap.
In tandem with this tokenization strategy, Maharashtra’s Chief Minister Devendra Fadnavis has also directed officials to draft a dedicated blockchain property law known as the DELTA Act. If approved, this legislation would position Maharashtra as the first Indian state to implement a specialized framework for blockchain-based property tokenization.
At the national level, the Securities and Exchange Board of India (SEBI) has initiated a pilot program for tokenized corporate bonds under a new framework dubbed Demat 2.0. This groundbreaking pilot has allowed three companies to collectively raise 10.25 billion rupees, approximately $107 million. Public-sector lender REC successfully raised 5 billion rupees, while engineering group Larsen and Toubro matched this amount, and non-bank lender IIFL added 250 million rupees to the mix.
The Demat 2.0 system utilizes a distributed ledger connected to the Reserve Bank of India’s wholesale central bank digital currency, enabling atomic settlement. This innovative approach allows for real-time bond issuance and payment processing, eliminating the traditional delays of two to three days. Investors can also hold these bonds in their existing Demat accounts without undergoing new Know Your Customer (KYC) checks.
SEBI has announced that India is the first country to blend native bond issuance on a distributed ledger with depository-held records and CBDC settlement within a regulated market environment. Future phases of Demat 2.0 are set to broaden access, paving the way for secondary trading and retail participation.
