Power Grid hikes capex for 2012-17 by Rs 10,000 cr

State-run Power Grid Corp has increased its capital expenditure for 2012-17 by Rs 10,000 crore in view of additional projects undertaken by the firm.

Earlier, the company had announced a capital expenditure plan of Rs 1lakh crore for the said period of adding transmission capacity.

"In the 12th Plan period (2012-17), we had planned to invest Rs 1 lakh crore for transmission network addition, of which we have already made a capital expenditure of Rs 20,037 crore in the last financial year (2012-13)," Power Grid Corp Chairman and Managing Director R N Nayak said in a statement.

He told the shareholders at the company's AGM here that the company is also taking up more projects.

"A number of additional projects are being taken up including the smart grid projects, joint ventures with other firms," he said.

"These additional projects have added total investment programme to over Rs 1,10,000 crore in the 12th plan," he said, adding that the implementation of capex programme of over Rs 22,000 crore is in full swing.

On the company's proposed follow-on public offer, Nayak said: "Increased investment requirement calls for infusion of additional equity and the FPO is expected shortly."

The Power Ministry has proposed raising 13% fresh equity for the company and 4% of stake sale by the government, post Cabinet approval.

At the current price, a 13% stake is valued at about Rs 6,000 crore.

At present, the government holds a 69.42% stake in Power Grid.

This would be the second follow-on offer from Power Grid, which sold a 10% stake along with a similar stake divested by the government in November 2010.

The company hit the capital market with its initial public offering in October 2007.

Earlier this week the government kick-started the process of inviting applications from the merchant bankers to manage the Power Grid FPO.

Shares of the company closed at Rs 100.45, down 0.15%, from the previous close on the BSE.