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Powergrid to get $600 mn loan from World Bank, ADB

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BS Reporter New Delhi
Last Updated : Jan 19 2013 | 10:33 PM IST

"From the total $600 million, $400 million will be received from the world bank and the balance $200 million from the ADB," said a senior official of the Navratna PSU.

The government of India guaranteed loan agreement is a part of the World Bank's long term partnership formed in 1989 with the company.

Of the total power generated in the country, about 45 per cent is transmitted through Powergrid's transmission network and in a bid to further enhance its transmission capacity, the company is planning to add an additional 5,500 circuit kilometres of transmission lines along with 6,285 mega volt amperes (MVA) of transformation capacity in its network in the current financial year.

The company is hoping to achieve a total turnover of about Rs 5,400 crore compared to Rs 5,081 crore posted in 2007-2008. The ambitious plan however, is expected to require massive investments.

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"We are planning to invest around Rs 8,000 crore in our transmission projects by the end of the current year, 70 per cent of which - Rs 5,600 crore - will be met through loans" the official said.

The company had signed loan agreements with the two multilateral agencies this year for receiving $ 1,000 million (Rs 4,000 crore) loans - $600 million from the World Bank and $400 million from the ADB - to meet its funding requirements for various transmission projects which include providing transmission facilities for ultra mega power projects too.

The transmission giant had invested about Rs 6,000 crore last year (2007-2008) for increasing its asset base to a total of Rs 35,000 crore as compared to Rs 29,000 crore in 2006-2007.

The company's long term plan outlay however includes investing about Rs 55,000 crore by the end of the current plan period (2007-2012), out of which 30 per cent will be generated through the company's internal resources and the balance 70 per cent will be received through debt.

This investment plan includes ramping up the inter-regional power transfer capacity of the national grid from 17,000 mw at present to above 37,000 mw by the end of the year 2012.

For the financial year ended March 2008, the transmission giant recorded a 17.8 per cent increase in net profit at Rs 1448.47 crore on the back of greater asset commissioning and more revenues from its telecom and consultancy businesses.

From its telecom business, Powergrid received revenues of Rs 124 crore during 2007-08, up from Rs 77 crore in previous year. The company also recorded revenues of Rs 250 crore as consultancy fee during the year, compared to Rs 226 crore in 2006-2007.


 

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First Published: Jun 23 2008 | 4:37 PM IST

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