PowerGrid Q3 net soars 37%; to get Rs 5,000 cr LoC from SBI
PowerGrid Corp, which reported a 37 per cent rise in Dec quarter net at Rs 809 crore, said it is likely to get a Rs 5,000-crore line of credit from the State Bank.
"The State Bank has in-principle agreed to extend a line of credit worth Rs 5,000 crore to us. We expect to get the first tranche of the fund by the end of next month," a company official told PTI on condition of anonymity here on the sidelines of result announcement event.
This is part of the Navratna company's target of investing Rs 1 trillion crore during the 12th Plan period (2012-17) to increase its transmission network by over 60,000 circuit km to around 1.5 trillion circuit km.
PowerGrid reported a 37 per cent jump in net profit at Rs 809.23 crore for the quarter ended December 31, 2011 as against Rs 591 crore a year ago on a turnover of Rs 2,576 crore, which rose 20 per cent from Rs 2,145 crore year ago.
The PSU declared interim dividend of 8 per cent for the fiscal against 5 per cent last financial year. As of the reporting period, its commissioned assets stood at Rs 6,285 crore, while average availability of transmission system stood at 99.93 per cent.
Of the total fund raising plan, the Central utility will be raising 30 per cent, or Rs 30,000 crore, through equity (internal accruals and FPO proceeds) and the rest Rs 70,000 crore through debt, which could be from both domestic as well as international markets.
"PowerGrid has been raising debt mainly from the World Bank and Asian Development Bank with the Government backing. "But considering our ambitious target, we cannot depend on these two multilateral lenders for meeting our huge investment targets. We will have to explore other avenues like ECBs (external commercial borrowings)," the official said.
PowerGrid has tied up with Manila-based ADB for raising USD 250 million without sovereign guarantee. It has also tied up Rs 14,000 crore from the World Bank and ADB.
The transmission utility plans to spend around Rs 20,000 crore on Central sector generation, Rs 14,000 crore on ultra mega power projects, Rs 55,000 crore on independent power producers and Rs 11,000 crore for grid strengthening.
PowerGrid also plans to undertake several initiatives, including linkages with Saarc countries, backward integration, renewable energy infrastructure for sustainable development and developing a smart grid/city.
"Under the backward integration initiative, we plan to enter into joint ventures for manufacturing major equipment like tower parts, conductors, transformers, reactors and insulators. "This will give us a competitive edge in the market while bidding for projects," PowerGrid Chairman and Managing Director R N Nayak said.
The company, which had set itself a target of spending Rs 55,000 crore during the 11th Plan (2007-12), has till date spent Rs 47,800 crore, Nayak said, adding, "the remaining Rs 11,000 crore will be spent by March."
For FY13, the company will be investing Rs 20,000 crore.