Central transmission utility Power Grid Corporation of India (PGCIL) will hit the bond market to raise Rs 4,000 crore this year to part-finance its projects, including those in the private sector.
These funds would be used for building a sound transmission network for private power generation companies as well as state-run companies such as NTPC and Damodar Valley Corp.
“The money will be raised by issuing bonds in two tranches before March, 2010," a senior company official said.
Besides issuing bonds, the public sector transmission firm is also seeking loans worth Rs 8,750 crore from the World Bank and the Asian Development Bank to finance its projects in the next financial year. The company has sent its proposal to the finance ministry through the power ministry to negotiate with the multilateral lending agencies, the official said.