Millennium Post

PowerGrid sticks to Rs16K-cr borrowing plan this year

State-run Power Grid Corporation will go ahead with its Rs 16,000-crore borrowing programme for this financial year notwithstanding the present difficult market conditions, a top company official said on Sunday.

'We have already raised close to Rs 9,000 crore through a mix of instruments like ECB (External Commercial Borrowing), bonds and loans from multi-lateral funding agencies like World Bank and Asian Development Bank,' the official said.

The company will wait for at least a month before it goes ahead with its plans for the rest Rs 7,000 crore borrowing, he said.
ECB is not a preferred option at present as the rupee's exchange rate is very high and the company will wait till the RBI's monetary policy next month, the official said.

Meanwhile, company's assets have jumped to a whopping Rs 85,000 crore from Rs 50,000 crore in 2011-12. It plans to breach the Rs 1,00,000-crore mark by the end of the 12th Plan period (2012-17) by commissioning more projects, he said.

The assets include various transmission networks (towers and sub-stations).Besides its borrowing plans, Power Grid Corporation also has plans for a follow-on-offer. The Board of Directors earlier this month had approved the FPO (follow-on offer) proposal by raising 15 per cent of the fresh equity of the paid existing paid-up share capital.

'We are hoping at current levels the FPO will fetch us close to Rs 7,000 crore,' the official added.The funds raised will be used for expansion plans, including transmitting power to the tune of 75,000MW by 2017. He further added that the proceeds of the FPO will be utilised towards the company's expansion plans.

However, the final decision of going ahead with the FPO of the company will be taken by the government. This would be the second time that Power Grid would be going for FPO after doing the same in November 2010.            
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