Power transmission monopoly PowerGrid Corporation of India is planning to get into distribution business. The company that cannot directly trade power in the domestic market due to regulatory restrictions, is scouting for power distribution opportunities overseas. Besides, it is trying to branch into EPC (engineering, procurement and construction) business in other countries.
The company currently has 19 overseas projects that mainly involve consultancy in power transmission. It has international projects of around Rs 10,500 crore under execution.
Chairman and Managing Director R N Nayak told Business Standard that they were not only looking for transmission, but also distribution business. “We have executed around 33 per cent of rural electrification where we are distributing power as franchisee. Though we have experience, we can enter distribution business provided we are able to buy and trade power in the domestic market,” he said.
| INTERNATIONAL BUSINESS |
|
Nayak said the company wanted to expand its overseas portfolio by going beyond consultancy. Besides consultancy, the company’s international foray is also focusing on asset management, EPC and joint venture/acquisition. The consultancy business contributes about Rs 290 crore to the company’s overall income of Rs 10,785 crore at the end of financial year 2011-12.
PowerGrid already offers consultancy services in overseas markets, such as Nepal, Bangladesh, Sri Lanka, Afghanistan, Nigeria and Bhutan, among others. The company is still exploring opportunities in this sector in other countries.
The company’s focus areas outside India are SAARC (South Asian Association For Regional Cooperation), Africa and Gulf countries. It has added four new countries — Myanmar, Kenya, Ethiopia and Tajikistan — in the last financial year. The number of orders from international sector increased to nine in FY12 from six in FY11.