Power Grid Corporation of India (PGCIL), which is hitting the stock market with its initial public offer next week, plans to mobilise about $3 billion (Rs 12,500 crore) from World Bank and ADB to fund various projects during the 11th Five-Year plan.PGCIL plans to take a loan of about $2 billion (Rs 8,350 crore) from World Bank and $1 billion (Rs 4,150 crore) from Asian Development Bank, power minister Sushil Kumar Shinde said in a written reply in the Rajya Sabha today.The country's biggest transmission utility took the first tranche of $400 million from World Bank in December 2006 and is considering availing the second tranche of $600 million during 2007.ADB's $1 billion loan is to part-finance the National Grid Development Programme, which will cost $2.57 billion. ADB has proposed to provide a multi-trache sovereign guaranteed loan of $800 million and a non- sovereign loan of $200 million.Shinde said the sovereign loan would be under the multi-tranche financial facility of ADB, whereby the agency provides individual loans to finance the sub-projects as and when they are ready for financing and a request is made.Power Grid Corp will launch its IPO on September 10 for raising an estimated Rs 3,000 crore.The country requires more than Rs 70,000 crore during 2007-12 for expanding and upgrading the electricity transmission network. Of this, only about Rs 20,000 crore would be invested by private players and the remaining would have to be spent by Power Grid and other public sector utilities.
