India’s Power Grid Corporation eyes spending $3.87b for transmission upgrades
The Power Grid Corporation (PGCIL), a state run transmission and distribution company, has planned a capital expenditure of Rs.250 billion (~$3.87 billion) for FY2017-18, according to Mercom Capital Group.
The company has reported a 22 percent rise in standalone net profit to Rs.19.16 billion (~$297 million) for the quarter ended March 31. Revenue from operations went up 17 percent to Rs 67.12 billion (~$1.04 billion).
Here’s more from Mercom Capital Group:
The company has an existing pipeline of projects worth Rs.1.3 trillion (~$20.1 billion) on hand which it is expected to execute over the next 3-4 years. The Rs 200 billion (~$3.1 billion) worth of solar and wind projects which are likely to come up, is also a growth opportunity. Of the planned Rs.250 billion (~$3.87 Billion) capex for FY2017-18, Rs.175 billion (~$2.71 billion) is going to be raised via debt.
The company will raise the funds through issue of bonds both domestic and international and also through bilateral and multilateral funding sources and forex borrowings. Power Grid is also planning to raise money via masala bonds. Currently, Power Grid is operating about 139,700 ckms of transmission lines along with 220 sub-stations with transformation capacity of over 292,500 MVA.