The Hindu Business Line : PowerGrid net up 15 pc

POWER Grid Corporation of India Ltd (PGCIL), a wholly- owned Government company, has recorded a net profit of Rs 740 crore during fiscal 2003-04, a 15 per cent rise over the previous year's performance. The turnover, meanwhile, grew by 10 per cent during fiscal 2003-04 to Rs 2,783 crore, according to the PGCIL Chairman and Managing Director, Mr R.P. Singh.

Expressing his fears over the adverse impact of the Central Electricity Regulatory Commission's (CERC) tariff orders, Mr Singh said, ``in 2004-05 alone, a dent of Rs 338 crore is envisaged in the internal resource generation. PGCIL is taking all possible steps to generate additional internal resources''. The company reported an improved realisation of dues at 98.3 per cent during fiscal 2003-04 as against 95 per cent in the previous year.

PGCIL plans to approach the CERC with a review petition in view of the adverse impact of the regulator's orders.

According to Mr Singh, PGCIL would be hurt by Rs 100 crore owing to reduction of return on equity post tax from 16 per cent to 14 per cent.

The company would also stand to lose another Rs 119 crore on account of reduction of incentives for better performance.

Further, changes introduced for funding projects by tinkering with the debt-equity ratio would also impact the corporation by another Rs 119 crore. PGCIL on Thursday said it was interested in entering into a transmission joint venture with Reliance Industries for evacuating power from the latter's proposed power project at Dadri, Uttar Pradesh.

"We will certainly consider the proposal from them (Reliance) if they approach us", Mr Singh said when asked if the corporation was open to a joint venture with the Reliance Group.

According to Mr Singh, Reliance had approached PGCIL for undertaking systems strengthening studies about two months back for which his company has agreed.

He said preliminary calculations place the cost of establishing a line for evacuation power at around Rs 2,000 crore-2,500 crore.