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Power Grid Corp lines up capex of Rs22,650 cr

Power Grid Corp lines up capex of Rs22,650 cr
PTI
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First Published: Sun, Nov 07 2010. 12 13 PM IST
Updated: Sun, Nov 07 2010. 12 13 PM IST
Mumbai: Navratna company Power Grid Corporation of India Ltd (PGCIL) has lined up a total estimated fund expenditure of Rs22,649.39-crore to meet the capital requirements for the implementation of 12 identified projects.
“We envisage a total estimated fund expenditure of Rs22,649.39-crore to meet the capital requirements for the implementation of 12 identified projects,” PGCIL’s chairman and managing director S. K. Chaturvedi said in a statement here.
As at 30 September, 2010, PGCIL will utilize the amount for projects that will strengthen existing transmission lines or grids and projects for establishing new transmission lines connecting new generating plants. The transmission projects are expected to enhance the length of our transmission system by 18,711 circuit kilometers.
PGCIL, which is the world’s best transmission companies with 99.77% system availability, will build 9 high capacity power transmission corridors, Chaturvedi said.
The world’s third largest power transmission company PGCIL has invested Rs25,440.52-crore to further develop the national grid, including expanding inter-regional transmission systems and developing system strengthening schemes and transmission systems for the evacuation of power from central sector generation projects and UMPPs.
“We want to maintain efficient operating performance by modernising our infrastructure and services and by maintaining industry’s best practices. We shall continue to expand our telecommunications infrastructure operations and our consultancy business,“ Chaturvedi said.
PGCIL has 68 ongoing transmission projects and 64 sub-stations under various stages of implementation with a budgeted cost of over Rs 81,000-crore as on 30 September.
PGCIL, which owns and operates more than 95% of India’s inter-state and inter-regional electric power transmission system (ISTS), will fund 12 identified projects with a debt-equity ratio of 70:30 in accordance with CERC norms. As of 30 September, 2010, the proposed funding includes equity component of Rs2,647.08-crore and debt component of Rs 7,131.17-crore.
The equity component of the identified projects is to be funded by a combination of identifiable internal accruals of the company and the proceeds of the fresh issue. Net proceeds from the forthcoming Further Public Offer (FPO) amounting to Rs3,800-crore will also be deployed. Balance amount proposed to be financed from loans and identifiable internal accruals will be Rs9,071.08-crore.
Of the total capex of Rs 22,649.39-crore for the identified projects, the company has already incurred an expenditure of Rs 9,778.25-crore as on 30 September, 2010. The amount proposed to be financed from existing identifiable internal accruals is Rs1,475-crore. The funding required excluding the net proceeds and existing identifiable internal accruals is Rs7,596.13-crore.
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First Published: Sun, Nov 07 2010. 12 13 PM IST