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Updated: May 29, 2013 19:49 IST

Power Grid to raise Rs. 8,000 crore via domestic, overseas bond sale

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A view of telecom towers over a building in New Delhi. File photo V.V. Krishnan
A view of telecom towers over a building in New Delhi. File photo V.V. Krishnan

State-run power transmission company, Power Grid Corporation, plans to raise Rs. 8,000 crore during the fiscal through domestic and international bonds.

“We will be raising nearly Rs. 8,000 crore through bonds, both domestic as well as international, this fiscal,” Power Grid Corporation’s Director of Finance R.T. Agarwal told PTI on Wednesday at the post-earnings press conference.

The company reported a 7.53 per cent increase in standalone net profit in March quarter at Rs. 1,109.44 crore against Rs. 1,031.69 crore year ago.

Its total revenues on a standalone basis stood at Rs. 3,380.66 crore, up by 7.13 per cent, from Rs. 3,155.66 crore in the year-ago period.

This fund raising is a part of the Rs. 20,000-crore capital expenditure planned by the company for FY14, he said.

“We will be borrowing some amount from the World Bank and Asian Development Bank, with which we already have a long-term tie-up. Some amount will come from internal accruals and equity contribution. So for the remaining Rs. 8,000 crore, we will go to the markets,” Mr. Agarwal said.

He said that the contribution from domestic bonds will be higher. “Since the cost of raising funds in domestic market is lower compared to ECBs, we will be focusing much on domestic bonds.” The process was likely to be completed by January next.

For the full year, Power Grid reported a standalone net profit of Rs. 4,234.50 crore, a 30 per cent rise compared to Rs. 3,254.95 crore in 2011-12, while total income for FY13 rose to Rs. 13,328.74 crore from Rs. 10,785.01 crore in FY12.

On a consolidated basis, its net rose nearly 31 per cent to Rs. 4,312.61 crore for the 2012-13 fiscal, compared to Rs. 3,302.99 crore in FY12.

In FY13, its total income increased to Rs. 13,727.12 crore, from Rs. 11,073.58 crore in the last fiscal.

Shares of the company closed at Rs. 113.35 apiece, up 0.76 per cent, on the BSE.

Transmission lines

Currently, Power Grid is operating about 1,00,600 circuit km of transmission lines along with 168 sub-stations with transformation capacity of more than 1,64,000 mva (megavolt ampere).

The company’s income on consolidated basis for the year from transmission business rose to Rs. 12,570.87 crore from Rs. 9,825.63 crore in FY12. Its income from the telecom segment increased to Rs. 231.39 crore from Rs. 201.19 crore in FY12.

“Though the telecom sector is not doing so well today, we are building our capacity to meet the demand in future. We expect the telecom business to contribute significantly to our revenues in future,” chairman and managing director R.N. Naik said.

PGCIL has a telecom network of about 29,000 km.

Consultancy service

The company is also looking at expanding its presence in the international market through consultancy services. Currently, it is providing its services in 11 countries including Nepal, Bhutan, Bangaladesh, Afghanistan, Sri Lanka, Myanmar, the UAE, Nigeria, Kenya, Ethiopia and Tajakistan.

“We have also undertaken a grid management contract in Ethiopia, where we will be providing our services for managing the grid which handles up to 5000 mw of power,” Mr. Naik said.

“This is our first project, but we are also exploring similar opportunities in other countries as well,” he added.

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Raising money from home and abroad is one of the finest and smartest ideas. India can not
move to th future unless energy is made to all.

from:  Kamath
Posted on: May 29, 2013 at 20:06 IST
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