Power Grid to raise $3 bn from WB, ADB

Power Grid to raise $3 bn from WB, ADB
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First Published: Wed, Sep 05 2007. 05 12 PM IST
Updated: Wed, Sep 05 2007. 05 12 PM IST
PTI
New Delhi: Power Grid Corporation of India Ltd, which is hitting the stock market with its initial public offer next week, plans to mobilise $3 billion (Rs12,500 crore) from World Bank and ADB to fund various projects during the 11th Five-Year plan.
PGCIL planned to take a loan of $2 billion (Rs8,350 crore) from World Bank and $1 billion (Rs 4,150 crore) from Asian Development Bank, Power Minister Sushilkumar Shinde told Rajya Sabha in a written reply.
The country’s biggest transmission utility took the first tranche of $400 million from World Bank last December and is mulling taking the second tranche of $600 million during 2007.
ADB’s $1 billion loan is to part-finance the National Grid Development Programme, which will cost $2.57 billion. ADB has proposed to provide a multi-trache sovereign guaranteed loan of $800 million and a non- sovereign loan of $200 million.
Shinde said the sovereign loan would be under the multi-tranche financial facility of ADB, whereby the agency provides individual loans to finance the sub-projects as and when they are ready for financing and a request is made.
Power Grid Corp will launch its IPO on 10 September for raising Rs3,000 crore.
The country requires more than Rs70,000 crore during 2007-12 for expanding and upgrading the electricity transmission network. Of this, only about Rs20,000 crore would be invested by private players and the remaining would have to be spent by Power Grid and other public sector utilities.
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First Published: Wed, Sep 05 2007. 05 12 PM IST