PGCIL to open office in Dubai; eyes stake in Transco at $800mn

PGCIL to open office in Dubai; eyes stake in Transco at $800mn

New Delhi: The country’s largest power transmission utility, Power Grid Corp., is eyeing a stake of up to 20% in a transmission company in the Pjilippines, at an estimated cost of $800 million. It is also setting up an office for consultancy services in Dubai.

The company has submitted an expression of interest for picking 5-20% in Philippines’ National Transmission Company, whose total valuation is estimated at $4 billion, PGCIL chairman and managing director, R P Singh, told PTI.

“We are a strong player in the country. A stake in an overseas company would give us 18% returns a year against 14-15% in the country," he said.

The company has got the board’s approval for opening an office in the Philippines, which would provide consultancy services from concept to commissioning of power transmission and distribution units.

The office would open in the next 10-15 days in that country and the Middle East.

“Going forward we expect substantial revenues from the region. The Middle East is a very important area for us, as we have huge business prospects there," Singh said.

He added PGCIL has also been declared as a winning company for a transmission contract from Nigeria.

“We’ve got the information, but the letter of intent is yet to be received," he said.

After a huge response for its public issue and a star debut on the Bombay Stock Exchange, PGCIL on 31 October posted a net profit of Rs371.22 crore for the three months ended 30 September. Its total income stood at Rs1,108.10 crore for that quarter.

Singh attributed the rise in profits to commissioning of more projects this year.

“Till September this year the company commissioned projects worth Rs3,360 crore against Rs1,779 crore in the corresponding period last year," he said.

Singh has been nominated as the first president of Very Large Power Grid Operators (VLPGO) for 2007-08 at the fourth annual VLPGO CEO meet on October 30 here.

Brazil, Korea, Russia, Spain, France, the United States, Japan are among other members of VLPGO.

The recognition would also come as an advantage to bag the Philippines as well as other deals, the PGCIL CMD said.