Power Grid to raise Rs 13,500 crore

Power Grid Corporation of India (PGCIL) is planning to raise around Rs 13,500 crore by way of private placement of bonds in the current fiscal. In this regard, the company is seeking approval of its shareholders. The proceeds would be used for capital expenditure. Earlier in March, the company’s board had approved raising up to Rs 16,500 crore this financial year (2014-15) to meet capital expenditure requirements. The amount of Rs 16,500 crore includes a proposed drawal of Rs 3,000 crore from Foreign Currency Committed Loans (FCCL) and Rs 2,000 crore from SBI term loan during the FY 2014-15, leaving untied debt of Rs 11,500 crore. PGCIL is India’s principal electric power transmission company. It owns and operates most of India’s interstate and inter-regional electric power transmission systems with inter-regional power transfer capacity of about 20,800 MW and wheels nearly 45% of total power generated across India.