Country's largest power transmission utility Power Grid Corporation is eyeing up to 20 per cent stake in Philippines' transmission company while setting up an office in Dubai.
NEW DELHI: Country's largest power transmission utility Power Grid Corporation is eyeing up to 20 per cent stake in Philippines' transmission company, estimated to cost USD 800 million, while setting up an office for consultancy services in Dubai.
The company has submitted the Expression of Interest for picking a stake anywhere from 5-20 per cent in Philippines' National Transmission Company, whose total valuation is being estimated to be at USD 4 billion, PGCIL Chairman and Managing Director R P Singh said.
"We are a strong player in the county. A stake in an overseas company would give us 18 per cent returns per annum, against 14-15 per cent in the country," he said.
The company has received board's approval for opening the office, which would provide consultancy services from concept to commissioning of power transmission and distribution units,
The office would be opened in the next 10-15 days to provide consultancy services in that country and the Middle East region.
"Going forward we expect substantial revenues from the region. Middle East is a very important area for us, as we huge business prospects there," Singh said.
He added PGCIL has also been declared as a winning company for a transmission contract from Nigeria.
"We got the information, but the Letter of Intent is yet to be received," he said
After a huge response for its public issue and a star debut on the Bombay Stock Exchange, PGCIL yesterday posted a net profit of Rs 371.22 crore for second quarter ended September 30. Its total income stood at Rs 1,108.10 crore for the quarter.
Singh attributed the rise in profits to commissioning of more projects this year.
"Till September this year the company commissioned projects worth Rs 3,360 crore against Rs 1,779 crore in the corresponding period last year," he said.
Singh has been nominated as the first president of Very Large Power Grid Operators (VLPGO) for 2007-08 at the fourth annual VLPGO CEO meet on October 30 here.
Brazil, Korea, Russia, Spain, France, the United States, Japan are among other members of VLPGO.
The recognition would also come as an advantage to bag the Philippines as well as other deals, the PGCIL CMD said.
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