Twitter
Advertisement

Power Grid plans Rs 5000 cr bond issues this fiscal

Power Grid Corporationof India (PGCIL), the state-owned power transmission company, plans two bond issues worth Rs 5,000 crore in the current fiscal.

Latest News
article-main
FacebookTwitterWhatsappLinkedin
Power Grid Corporationof India (PGCIL), the state-owned power transmission company, plans two bond issues worth Rs 5,000 crore in the current fiscal.

“To finance our capex plans, we are contemplating two bond issues of approximately Rs 2,500 crore each this fiscal,” S K Chaturvedi, chairman and managing director, PGCIL, said. The first is expected in November 2009 and the second is likely in January 2010, he added.

For the current financial year, PGCIL has earmarked a capex of Rs 12,500 crore, which will mainly go into evacuation of power and setting up a grid in Arunachal Pradesh.

“Though we have a memorandum of understanding with the government to spend Rs 12,500 crore in the current year, like every year, we will definitely overshoot the target,” he said.

For example, in the last financial year, the company had a capex target of Rs 7,600 crore, but exceeded it to end the year with an expenditure of Rs 8,095 crore.

A major part of the capex for FY10 will be to set up a 765kV transmission line for evacuation of power from the four upcoming ultra mega power projects (UMPPs). Each UMPP would require an investment of Rs 4,000-5000 crore to set up a transmission system.

The remaining capex will be invested in setting up a grid strengthening system.

PowerGrid is also in talks with the World Bank to raise a $1-billion loan for the current year, but clarity on it will be available only by July end. Once that is sanctioned, the company will look at raising more loans from the institution. “We are also talking to the Asian Development Bank (ADB) for another one-billion-rupee loan,” Chaturvedi said.

He said the company, which diversified into transmission consultancy business in 2006 and had ventured into a few counties overseas, will enter a few more countries this year. “We are focusing on countries such as Oman, Qatar, Kazakhistan, the United States and Canada to offer our consultancy services”.

The company’s overseas consultancy revenues are about Rs 250 crore now.
Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement