Power Grid lines up capex of Rs 22,650 cr for 12 projects

Navratna company Power Grid Corporation of India Ltd (PGCIL) has lined up a total estimated fund expenditure of Rs 22,649.39 crore to meet the capital requirements for the implementation of 12 identified projects.

"We envisage a total estimated fund expenditure of Rs 22,649.39 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 September 30, 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 per cent system availability, will build 9 high capacity power transmission corridors, Chaturvedi said.

The world's third largest power transmission company PGCIL has invested Rs 25,440.52 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 September 30.

PGCIL, which owns and operates more than 95 per cent 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 September 30, 2010, the proposed funding includes equity component of Rs 2,647.08 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 Rs 3,800-crore will also be deployed. Balance amount proposed to be financed from loans and identifiable internal accruals will be Rs 9,071.08 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 September 30, 2010. The amount proposed to be financed from existing identifiable internal accruals is Rs 1,475-crore. The funding required excluding the net proceeds and existing identifiable internal accruals is Rs 7,596.13 crore.