Power Grid Corp scouting for partners for US entry

Power Grid Corp scouting for partners for US entry
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First Published: Tue, Jun 16 2009. 09 59 PM IST

Building capital: A power supply tower line. PowerGrid is planning to raise Rs2,500 crore via two bond issues—in Oct-Nov and Jan-Feb. Hemant Mishra / Mint
Building capital: A power supply tower line. PowerGrid is planning to raise Rs2,500 crore via two bond issues—in Oct-Nov and Jan-Feb. Hemant Mishra / Mint
Updated: Tue, Jun 16 2009. 09 59 PM IST
Mumbai: State-run utility Power Grid Corp. of India Ltd is in advanced talks with an US firm to jointly bid for transmission projects in the US, its chairman and managing director S.K. Chaturvedi said on Tuesday.
“We are having discussions with different parties and we will be participating in the bids...within two-three months,” Chaturvedi said over the telephone.
PowerGrid transmits 45-50% of electricity in India.
Building capital: A power supply tower line. PowerGrid is planning to raise Rs2,500 crore via two bond issues—in Oct-Nov and Jan-Feb. Hemant Mishra / Mint
The company is also talking with Indian firm Kalpataru Power Transmission Ltd for the partnership in the US market, he said.
“But with the American (company), definitely we are in advanced discussions,” he said, but did not identify the company.
The company expects to clock the turnover of Rs8,000 crore in the fiscal 2010 against Rs6,675 crore in the year-ago period, while the profit in fiscal 2010 is likely to be “above Rs1,800 crore” against Rs1,690 crore in the previous fiscal, Chaturvedi said.
“If some (generation) capacity addition had taken place in this period, we could have been much better. Because...we can get revenue only when power starts flowing.”
The country added 3,453.7MW of power in 2008-09 against 9,263MW it added in 2007-08—which is about 63% down on year—according to data by Central Electricity Authority.
PowerGrid is planning to raise Rs2,500 crore through two bond issues—in October-November and January-February, he said.
It plans to spend about Rs55,000 crore during the 11th Plan period ending 2012 and had tied up about 75% of the cash, Chaturvedi told reporters in April.
“We had a good financial backing even in this recessionary period,” he said.
India’s new elected Congress party-led coalition is seen to push economic reforms, including privatising some of the state firms. However, Chaturvedi said he had not heard from the ministry of power, under which his company operates. “We are not in the first list of the government but in second list we might find a place.”
The shares in the company ended 0.29% higher at Rs122.50 in a Mumbai market that closed up 0.55%.
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First Published: Tue, Jun 16 2009. 09 59 PM IST