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PowerGrid plans Rs 10,000-cr bond issue in 2011-12

10 Jan 2011 Evaluate

Power Grid, the country’s largest transmission firm, plans to issue domestic bonds for about Rs 10,000 crore in 2011-12 to meet its expansion needs. It has planned a 50 per cent increase in its capital expenditure to Rs 18,000 crore for the next year.

The company may also go in for another follow-on public offer (FPO). It will raise about Rs 10,000 crore in phases through domestic bonds in the next fiscal year. In the current fiscal, the company have raised a major portion of the targeted Rs 7,000 crore from domestic bonds and whatever is remaining will be raised in the ongoing last quarter.

Power Grid owns and operates around 72,000 circuit km of transmission lines and transmits 45 per cent of the total power generated in the country. It also owns 150000 transmission towers across the country, with almost 70 per cent of these located in semi-urban and rural areas. With India planning to add 78,700 Mw of generation capacity during the 11th Plan and another 100000 Mw in the 12th Plan, huge investment in transmission will be required for evacuation of electricity.

Power Grid Corp Share Price

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