The Hindu Business Line : PowerGrid plans Rs 16,500-cr investments

New Delhi, Oct. 10 Power Grid Corporation of India Ltd (PGCIL) is planning equity investments to the tune of Rs 16,500 crore over the next five years to fund a slew of transmission projects, aimed at nearly trebling the country’s inter-regional transmission capacity.

“During the Eleventh Plan, the Government is aiming to achieve a national power grid with inter-regional power transfer capacity of over 37,000 MW, which would include PGCIL’s transmission system and a handful of projects involving private players,” a Government official said.

The company’s recently concluded public float mobilised around Rs 3,000 crore. PGCIL would invest about Rs 55,000 crore on transmission infrastructure during the five-year period, including in 45 projects that the company is currently implementing. Of the total investments, around 30 per cent of the proposed capital expenditure would be funded by equity, while the remaining 70 per cent by debt financing, officials said.

As of June 30, 2007, PGCIL’s total borrowings stood at Rs 20,231.59 crore and the transmission major’s total debt: equity ratio was 1.81:1.

PGCIL currently manages the National Grid with inter regional capacity of 14,100 MW, which is proposed to be enhanced to over 37,000 MW by the year 2012. The company owns and operates 61,875 circuit km of electrical transmission lines and 106 electrical substations.

During 2006-07, the utility transmitted approximately 298 billion units of electricity, representing approximately 45 per cent of all the power generated in the country.

The Centre has set a target to add 78,577 MW generation capacity during the Eleventh Plan period, from 132,330 MW at the end of March 2007, with transmission capacity targeted to expand to 37,700 MW during the period, from around 14,100 MW currently.

PGCIL, besides eyeing the domestic market opportunities, has bid to build and maintain transmission lines in the Philippines, officials said. The transmission major is also eyeing bidding opportunities in Afghanistan and other countries.