Comments
State-run transmission utility Power Grid Corporation of India Ltd (PGCIL) would be tapping the bond market to raise ₹12,000 crore in the current fiscal, said Chairman R N Nayak on Tuesday.
Addressing a press conference, Nayak said in the current fiscal investments in power sector were coming up rapidly.
Therefore, the proceeds from the bonds would be used for the ₹22,500- crore capital expenditure plan.
He pointed out that until last year there was an atmosphere of ‘mayusi’ (depression) in power sector but today the power sector has started booming.
Rapidly, projects are coming up online and coal is being made available to them. Production of power by conventional means has increased by eight per cent and by renewable means 16 per cent. Therefore, PGCIL was gearing up for the new capacities.
Nayak said that the company has earmarked a capital expenditure of up to ₹1 lakh crore for the next five years. The company would be maintaining a 70:30 debt to equity ratio for its capex plans.
Finance Director of the company RT Agarwal said that the company regularly raises funds from the bond market and recently it had raised ₹3,000 crore for the capex purpose. Further, fund raising will depend on favourable interest rates.
Nayak added that the company was looking at newer opportunities from the second phase of the green corridor plan, for which power would be evacuated from renewable energy projects.
In the first phase, project worth ₹25,000 crore are under implementation, he said.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.