Power Grid Corporation of India Ltd, which is hitting the stock market with its initial public offer next week, plans to mobilise about USD 3 billion (Rs 12,500 crore) from World Bank and ADB to fund various projects during the 11th Five-Year plan.
PGCIL planned to take a loan of about USD 2 billion (Rs 8,350 crore) from World Bank and USD 1 billion (Rs 4,150 crore) from Asian Development Bank, Power Minister Sushilkumar Shinde told Rajya Sabha in a written reply.
The country’s biggest transmission utility took the first tranche of 400 million dollars from World Bank in December 2006 and is considering to avail the second tranche of 600 million dollars during 2007.
ADB’s one billion dollar loan is to part-finance the National Grid Development Programme, which will cost USD 2.57 billion. ADB has proposed to provide a multi-trache sovereign guaranteed loan of USD 800 million and a non-sovereign loan of USD 200 million.
Shinde said the sovereign loan would be under the multi-tranche financial facility of ADB, whereby the agency provides individual loans to finance the sub-projects as and when they are ready for financing and a request is made.
Power Grid Corp will launch its IPO on September 10 for raising an estimated Rs 3,000 crore.
The country requires more than Rs 70,000 crore during 2007-12 for expanding and upgrading the electricity transmission network. Of this, only about Rs 20,000 crore would be invested by private players and the remaining would have to be spent by Power Grid and other public sector utilities.