PowerGrid raises Rs 868 cr via non-convertible taxable bonds

Sanjay Jog

Mumbai, Aug 10: The state-run PowerGrid Corporation has recently raised a record Rs 867.96 crore through its non-convertible taxable bonds. The company, which has posted a net profit of Rs 692 crore as on March 31, 2001, has retained Rs 761 crore at 10.90 per cent.

The PowerGrid chairman and managing director RP Singh told The Financial Express that its issue of Rs 250 crore has been oversubsclribed. He said that these proceeds will be utilised mainly for the implementation of transmission and optic fibre link projects across the country.

The issue was managed by ABN Amro Securities, Centrum Finance, Darashaw & Company, RR Financial Consultants, Allianz Securities, Citibank, ICICI Securities and Finance and SBI Capital Markets.
Mr Singh said that the company has also received loan of $400 million from the World Bank and another $250 million from the Asia Development Bank.

Mr Singh said that the company in the first phase has undertaken a Rs 1,000 crore project to lay 14,000 km of optic fibre in various parts of the country. “The company is expected to earn a revenue Rs 127 crore in second year through the optic fibre business in the second year, Rs 250 crore in the third year and Rs 550 crore in the fourth year with a market share of 6 per cent,” he added.

Mr Singh said that the company has participated in the Rs 2,500 crore project alongwith a private sector company to lay transmission lines from Tala in Bhutan. “Out investment will be worth Rs 1,000 crore, while the balance Rs 1,500 crore will come from the private sector.

The power will be transmitted up to Delhi, Punjab and other northern states,” he added.

Mr Singh said that the bids of this project will be opened on August 16 and on the same day the company is expected to sign a memorandum of understanding.

Mr Singh said that the PowerGrid has already entered into memorandum of understanding for utilisation of capacity with VSNL and BPL. It has also started negotiations for entering into joint ventures with various state electricity boards towards laying down the optic fibre network as it has already installed optic fibre of 3,700 km.