PowerGrid gets shareholders' nod to raise up to Rs 20k cr via bonds in FY20

State-owned PowerGrid has got shareholders' approval for raising up to Rs 20,000 crore through bonds or debentures on private placement basis in 2019-20.

The proposal to raise funds up to Rs 20,000 crore from domestic market through issue of secured /unsecured, non-convertible, noncumulative/ cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2019-20 in up to twenty tranches/offers was listed on the agenda of its annual general meeting on held September 18.

The proposal was approved with requisite majority, the company said in a BSE filing.

The board in its 355th meeting held on July 10, 2018, approved raising of Rs 20,000 crore in up to twenty tranches in 2019-20 for capital expenditure, providing inter-corporate loans to wholly owned subsidiaries and for general corporate purposes.

An amount of Rs 25,000 crore to Rs 30,000 crore is being considered as expected capital expenditure during 2019-20. In order to have a debt equity mix of 70:30, an amount of Rs 17,500 crore to Rs 21,000 crore is estimated to be mobilised as debt and balance Rs 7,500 crore to Rs 9,000 crore from internal resources during the next fiscal.

The borrowing for 2019-20 will be within overall borrowing limits of Rs 1,80,000 crore and the board recommended passing of the resolution.

In a separate filing, the company said its board Thursday approved proposals to invest Rs 659.83 crore in various projects.

These include 'North Eastern Region Strengthening Scheme-VIII (NERSSVlll)' at an estimated cost of Rs 221.36 crore with commissioning schedule within 30 months and works associated with new WR-NR 765kV Inter-Regional Corridor at an estimated cost of Rs 264.91 crore with commissioning schedule of 32 months.

The board has also approved investment for communication system under Eastern Region Fibre Optic Expansion Project at an estimated cost of Rs 47.19 crore.