Home > Power > Power Grid’s Expansion Plans: An Update

Power Grid’s Expansion Plans: An Update

PGCIL, the central transmission utility, is India‘s largest power transmission company and owns & operates over 95% of India‘s inter-state and inter-regional electric power transmission system.

PGCIL has 68 ongoing transmission projects and 64 sub-stations under various stages of implementation, with a budgeted cost of over Rs 81,000 crore as on September 30. The company has 12 identified projects and plans to fund it with a debt-equity ratio of 70:30 in accordance with Central Electricity Regulatory Commission norms.

To fund the ongoing projects, the company came out with a follow-on public offering. With the huge success of Coal India divestment through India’s biggest ever IPO fresh in investors minds, the government launched the divestment of PGCIL on November 9.

The bidding, which offered shares worth approximately Rs 8,000 crore, represents 20% of the pre-issue paid up capital of PGCIL, reducing the Centre‘s stake in PGCIL from 86.4% to 66.4% (dilution of 10%).

Categories: Power
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