Maharashtra, the Indian state that boasts the country’s highest gross domestic product and a thriving industrial base, is currently drafting a pioneering policy that would allow it to tokenise a range of public assets. The objective of the initiative is to create a new source of financing for large‑scale infrastructure projects, ranging from modernising the electricity transmission network to expanding roadways, water supply systems and public transportation.
By converting physical assets into digital tokens on a blockchain platform, the state hopes to attract both domestic and international investors, improve transparency, and accelerate the delivery of critical public works. The concept of tokenisation involves representing ownership or a claim on an underlying asset with a cryptographic token that can be bought, sold, or transferred on a distributed ledger. In Maharashtra’s case, the assets under consideration include the extensive high‑voltage transmission lines that carry electricity across the state, substations, and other components of the power grid that are owned by the state electricity board.
Additional assets being evaluated for tokenisation include toll roads, ports, airports, and even certain parcels of land that are earmarked for future development. Why tokenisation now? The state government has identified several challenges in traditional infrastructure financing. Conventional methods rely heavily on bank loans, sovereign bonds, or public‑private partnership (PPP) arrangements, each of which can be time‑consuming, subject to credit rating constraints, and sometimes limited by bureaucratic red tape.
Moreover, the COVID‑19 pandemic and subsequent economic slowdown have tightened credit markets, making it more difficult for governments to secure low‑cost financing. Tokenisation offers a potential workaround by opening up a broader pool of capital, including retail investors who can purchase small fractions of an asset, thereby democratizing investment in public infrastructure. The draft policy outlines a step‑by‑step framework.
First, the state will conduct a thorough valuation of each asset, employing independent auditors and market experts to determine a fair market price. Next, the assets will be segmented into digital tokens, each representing a specific share of the underlying value. These tokens will be issued on a permissioned blockchain that complies with Indian regulatory standards, ensuring that anti‑money‑laundering (AML) and know‑your‑customer (KYC) requirements are met.
Investors will then be able to purchase tokens through a regulated digital exchange, with the proceeds funneled directly into a dedicated infrastructure fund. One of the flagship projects slated for tokenisation is the Maharashtra Electricity Transmission Network Upgrade. The network, which spans more than 30,000 kilometres, is aging and in need of modernization to accommodate renewable energy sources such as solar and wind.
By tokenising the transmission assets, the state aims to raise approximately ₹20,000 crore (about $240 million) over the next three years. The capital raised will be used to replace obsolete conductors, install smart grid technologies, and improve system reliability, thereby reducing transmission losses and supporting the state’s clean‑energy targets. Beyond the power sector, the policy also envisions tokenising the Mumbai‑Pune Expressway, a critical corridor that handles millions of vehicle trips annually. Token holders would earn a proportion of toll revenues, creating a steady cash flow that can be reinvested in road maintenance and expansion.
Similarly, the state’s major ports, such as Jawaharlal Nehru Port Trust (JNPT) and Mumbai Port, could be partially tokenised, allowing investors to share in the profits generated from cargo handling fees and ancillary services. The government has stressed that tokenisation will not compromise public ownership or control. Tokens will represent a financial claim rather than direct managerial authority.
The state will retain operational oversight, ensuring that service quality, safety standards, and regulatory compliance remain unchanged. In addition, smart contracts embedded in the blockchain will automate revenue distribution, reducing the risk of delayed payments or misallocation of funds. Regulatory compliance is a cornerstone of the initiative.
The policy references guidelines from the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the Ministry of Electronics and Information Technology (MeitY). A dedicated regulatory sandbox will be created to test the tokenisation platform under controlled conditions before full deployment.
This sandbox will allow the state to work closely with fintech firms, blockchain developers, and legal experts to fine‑tune the technical architecture, security protocols, and investor protection mechanisms. Stakeholder reaction has been mixed but largely optimistic. Infrastructure developers welcome the prospect of a new financing avenue that could reduce project timelines.
Institutional investors see tokenisation as a way to diversify portfolios with assets that have historically been illiquid. Consumer advocacy groups, however, have raised concerns about the potential for speculative trading and the need for robust consumer education to prevent misuse.
To address these concerns, the policy includes provisions for investor education campaigns, transparent reporting of asset performance, and strict limits on token resale periods to curb excessive volatility. Moreover, a portion of the token proceeds will be earmarked for social welfare projects, ensuring that the benefits of the financing model extend beyond pure infrastructure upgrades. Internationally, Maharashtra’s move aligns with a growing global trend. Countries such as Switzerland, Singapore, and the United Arab Emirates have already launched pilot projects that tokenise real estate, infrastructure, and even sovereign debt.
By adopting a similar approach, Maharashtra aims to position itself as a leader in the Indian fintech ecosystem and attract foreign direct investment (FDI) into its infrastructure sector. In summary, Maharashtra’s draft tokenisation policy represents a bold experiment in leveraging blockchain technology to unlock new sources of capital for public works. By converting state‑owned assets into tradable digital tokens, the government hopes to accelerate the modernization of critical infrastructure, broaden investor participation, and enhance fiscal transparency. While challenges remain—particularly around regulatory alignment, investor protection, and market acceptance—the initiative could set a precedent for other Indian states and potentially reshape the way public assets are financed in the 21st century.