PowerGrid gets easy loans despite tight liquidity

Written by Sanjay Jog | Mumbai | Updated: Jan 11 2009, 04:27am hrs
State run PowerGrid Corporation of India, which is involved in the development of national grid with the inter regional transmission capacity of 37,000 mw by 2012, is getting funds easily, despite the tight liquidity in the market.

PowerGrid Corporation CMD SK Chaturvedi told FE on Friday that last week the companys Rs 1,000 crore worth bond issue, for fifteen and half years was over subscribed and the company has mobilised Rs 3,400 crore.

Besides, it awaits the release of loan of $1 billion from the World Bank for various projects under the ongoing national grid project.

Incidentally, the Centre has recently given its approval for the same loan. Currently loans to the tune of $2.2 billion (Rs 10,000 crore) from The World Bank and Asian Development Bank has already been tied up or in the advanced stage of finalisation.

The company has already undertaken capex of Rs 55,000 crore to develop national grid and it has so far achieved the inter regional transmission capacity of 18,700 mw.

Moreover, an Asian Development Bank mission is coming soon to discuss loan disburs ement of $400 million. ADB has already disbursed $400 million of loan for basket of works.

Currently loans to the tune of $2.2 billion (Rs 10,000 crore) from the World Bank and Asian Development Bank has already been tied up or in the advanced stage of finalisation, Chaturvedi said.

He added that with regard to mobilisation of requisite debt funds PowerGrid Corporation is in a comfortable position, even in todays economic scenario, as it enjoys an excellent credit rating with financial institutions at national and international level.

At present, PowerGrid Corporation is operating around 69,500 ckt kms of transmission lines and 116 substations with a transformation capacity of 77,200 mva.

Pocket full

Companys Rs 1,000 cr worth bond issue, for fifteen and half years was over subscribed

Currently loans to the tune of Rs 10,000 crore from the World Bank and Asian Development Bank has already been tied up

Besides, it awaits $1 billion loan from the World Bank for the ongoing national grid project