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Power Grid board approves raising up to Rs 11,000 cr via bonds and term loans

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Capital Market
Last Updated : Jul 07 2022 | 4:50 PM IST

Power Grid Corporation of India said that its board approved a proposal to raise upto Rs 6,000 crore from the domestic market.

The company plans to raise funds through issue of secured/unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during FY2023-24 in up to 20 tranches.

The board also approved to sanction of Rupee Term Loan of upto Rs 5000 crore from commercial bank to meet capital expenditure and other business requirements.

Separately, the board according investment approval for Transmission Network Expansion in Gujrat to increase ATC from ISTS: Part B at an estimated cost of Rs 4,546.26 crore scheduled to be commissioned by June, 2023.

The board also sacntioned investment for Transmission Network Expansion in Gujrat to increase ATC from ISTS: Part C at an estimated cost of Rs 186.19 crore scheduled to be commissioned matching with establishment of 400/220kV Prantij S/s and 400kV Sankhari- Prantij D/c line by GETCO (presently expected by March, 2025).

The board also approved Western Region Expansion Scheme XXVI at an estimated cost of Rs 127.61 crore scheduled to be commissioned matching with downstream 220kV lines being implemented by MSETCL (presently expected by June, 2024 ).

Further, the board approved incorporation of the Joint Venture Company between Power Grid Corporation of India and Nepal Electricity Authority (NEA) with equity participation of 50:50 by both JV partners for implementation of Indian Portion of New Butwal - Gorakhpur 400 kV Double Circuit (Quad Moose) Cross Border Transmission Line.

Power Grid Corporation of India has been established by the Government of India (GoI) as the central transmission utility of India. As of 31 March 2022, the Government of India owned 51.34% stake in the company.

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On a consolidated basis, the company's net profit rose 17.9% to Rs 4,156.44 crore on a 1.7% rise in net sales to Rs 10,686 crore in Q4 FY22 over Q4 FY21.

Shares of Power Grid Corporation of India were up 0.90% to Rs 212.50 on the BSE.

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First Published: Jul 07 2022 | 3:24 PM IST

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