PowerGrid to raise Rs 3,000 crore via bond issue before March

State-run PowerGrid Corporation would raise Rs 3,000 crore through private placement of bonds before the end of March. The issue would be launched in the last week of February. The proceeds would be used for transmission projects.
The company has established inter-regional power transfer capacity of 23,500 Mw and would achieve 28,000 Mw by the end of March.

A company official told Business Standard, “The issue is part of our strategy to mobilise funds in the domestic market. So far, the company has mobilised Rs 7,000 crore through three similar bond issues and Rs 1,200 crore of multilateral loan.

Besides, PowerGrid has also organised a Rs 5,000-crore line of credit from the State Bank of India.” The company had approved an investment of Rs 19,700 crore in the current financial year, he said.

In the 12th Plan (2012-17), the chairman and managing director, R M Nayak, said the company would invest Rs 1 lakh crore to build inter-regional power transfer capacity of an additional 38,000 Mw. The company has approved investments of Rs 70,000 crore and awarded contracts worth Rs 56,000 crore. “Of the Rs 1 lakh crore, 30 per cent equity will come through internal accruals and FPO proceeds, while 70 per cent debt would be raised from the World Bank, Asian Development Bank, suppliers’ credit, domestic bonds and external commercial borrowings. A credit of Rs 14,000 crore has been tied up,” Nayak said.

According to Nayak, PowerGrid has negotiated a loan of $250 million from ADB without sovereign guarantee.

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On the arrears from utilities, the company would be able to liquidate dues of Rs 460 crore by the end of March.

“The Central Electricity Regulatory Commission has been helpful; because of its support and orders, the company was able to bring down dues from Rs 3,082 crore as on March 31, 2011 to Rs 460 crore as on date,” Nayak added


Sources: Business Insider & Financial times


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