Maharashtra Plans Blockchain Tokenization of State Assets

Maharashtra is developing a policy to tokenize government assets on blockchain, potentially using its electricity transmission infrastructure to raise capital for new power lines and energy storage projects.

Praveen Pardeshi, CEO of the Maharashtra Institution for Transformation (MITRA) and chief economic advisor to the chief minister, said the state wants to establish a regulatory framework that supports government asset tokenization. He outlined the proposal during “The Box Launch” event in Mumbai on Friday.

Electricity transmission assets could be among the first beneficiaries. Maharashtra’s transmission lines generate steady fees for carrying electricity, but the capital invested in the infrastructure remains difficult to unlock for additional projects. This has become particularly important as Maharashtra produces surplus solar electricity but lacks sufficient transmission and storage capacity.

Pardeshi suggested the state could tokenize 40% to 50% of certain transmission assets. Investors purchasing the tokens could receive a portion of the income generated by Maharashtra’s transmission company, while proceeds from token sales could finance additional grid infrastructure and solar energy storage facilities.

The plan could also help address sharp differences in electricity pricing. Pardeshi said distribution companies can pay between 16 and 18 rupees per unit during peak demand, while surplus electricity can trade for as little as 2 paisa per unit at other times.

Maharashtra, which accounts for roughly 14% of India’s nominal GDP and has about 130 million residents, is exploring real-world asset (RWA) tokenization beyond traditional financial instruments. The global tokenized asset market is currently valued at approximately $38 billion, with U.S. Treasuries and private credit representing much of the sector.

The state is also drafting the Maharashtra Digitisation and Exchange of Land Token Assets Act, known as the DELTA Act, which would establish a legal framework for blockchain-based property tokenization. The legislation has not yet been enacted.

Pardeshi stressed that tokenization should not be viewed as wholesale privatization. Instead, Maharashtra aims to retain control of public assets while allowing more investors and citizens to participate in financing infrastructure development.