Power Grid hits record high as it emerges successful bidder for 2 projects

Power Grid's board also approved proposal to raise up to Rs 5,700 crore through issuance of bonds on a private placement basis in multiple tranches in 2023-24

Shares of Power Grid Corporation gained 3 per cent to hit a record high of Rs 264.8 in Monday’s intra-day trade after the company was declared as a successful bidder under Tariff Based Competitive Bidding (TBCB) for two projects.

The stock of power transmission company surpassed its previous high of Rs 263.65, touched on July 6, 2023. In the past two trading days, the stock has rallied 6 per cent.

The state-run company said that it was declared successful bidder under tariff-based competitive bidding for two inter-state transmission system projects under build, own operate and transfer (BOOT) basis. Letters of Intent for both the projects have been received by Power Grid.

"The first project is for transmission system - evacuation of power from REZ in Rajasthan (20 GW) under Phase III Part B1. The project comprises of establishing new 765/400/220 kilovolt (KV) pooling station at Bhadla-3 and a 765 KV D/C Transmission Line traversing in Rajasthan and associated bay extension works," the company said.

The second project, meanwhile, is transmission scheme for Solar Energy Zone in Ananthpuram (Ananthapur) (2,500 MW ) and Kurnool (1,000 MW), Andhra Pradesh. The project comprises establishing new 400/220 KV Pooling Station at a suitable border location between Ananthpuram & Kurnool (in Andhra Pradesh) and two 400 KV D/C transmission lines traversing in Andhra Pradesh and associated bay extension works.

Meanwhile, Power Grid's board approved proposal to raise up to Rs 5,700 crore through issuance of bonds on a private placement basis in multiple tranches in 2023-24. The fund raised will be used to part finance its capital expansion requirement, to provide inter-corporate loans to wholly-owned subsidiaries/JVs, and for general corporate purposes.