PowerGrid’s Rs 2,600-cr issue opens tomorrow

Sanjay Jog

Mumbai, Nov 20: The state-run PowerGrid Corporation of India Ltd (PGCIL) would raise a whopping Rs 2,600 crore directly from the markets at the coupon rate ranging between 8.75 per cent and 10.25 per cent. The corporation, which proposes to raise funds through over 50 institutions, would hit the market from November 22.
This will be for the first time the corporation has decided not to involve arrangers for raising funds from the markets on the lines of National Thermal Power Corporation (NTPC), which recently raised directly about Rs 500 crore. The corporation chairman and managing director RP Singh told The Financial Express on Tuesday that it would approach the market from November 22.

“The corporation will need Rs 2,600 crore of which Rs 1,800 crore would be for the repayment of loans to the Centre as its multilateral loans have been routed through the Centre. Another Rs 800-900 crore would be for capital expenditure and repayment of loans of the financial institutions,” he said.

Mr Singh, who was with a high-level delegation led by the union power secretary returned from the Bangladesh tour on Monday, said that if the Centre permits the corporation would like to repay Rs 1,800 crore as a part of the multilateral loan routed through the Centre. In addition to this, the corporation would like to repay Rs 445 crore to the State Bank of India.

Mr Singh said that the corporation would need another Rs 450 crore for carrying out capital expenditure on its various transmission and system improvement projects across the country.

The corporation would need funds for Sasaram HVDC, Talcher-II transmission system, state of art load dispatch centres and system improvement in Bihar and southern parts of country. The corporation had initially shortlisted SBI Cap, JM, Isec, Centrum Finance, Kotak, Citi Bank, Bajaj, AK and DSP Merrill Lyncha as arrangers.