PGCIL net profit crosses Rs 1,000 cr
PGCIL reported a 28% jump in net profit to Rs 1,009 crore from Rs 786 crore last fiscal.india Updated: Jun 30, 2006 12:03 IST
Power Grid Corporation of India Ltd on Friday reported a 28% jump in net profit to Rs 1,009 crore from Rs 786 crore last fiscal and said it will come up with an initial public offer by the end of this year.
The state-run transmission utility, which has posted a 25 per cent increase in revenues to Rs 3,554 crore in 2005-06, has fixed a capital expenditure of about Rs 6,000 crore for 2006-07 and plans to foray into nearly a dozen countries, including China for consultancy, executing projects and operating transmission lines and grid network.
"We are keen to bring an IPO... We think it will be in December this year," Power Grid Chairman and Managing Director RP Singh told reporters.
He, however, declined to say how much the company was expecting to raise from the issue.
The company executed projects with a total capital expenditure of Rs 5,000 in 2005-06, including schemes of about Rs 800 crore of state electricity boards or utilities. In 2006-07, PGCIL would implement projects entailing an investment of about Rs 8,000 crore in 2006-07. Of this, Power Grid would invest Rs 6,000 crore while the remaining projects belong to state utilities.
The company would borrow about Rs 2,500 crore from the domestic market. It would also draw some additional amount from the 400 million dollars each loans granted by World Bank and Asian Development Bank.
Singh said PGCIL has established an inter-regional capacity to transfer 9,500 MW of electricity and was working on projects to enhance this capacity to 18,000 MW by 2007 and 37,200 MW by 2011-12.
On the company's overseas projects, he said the company was already executing projects in Afghanistan, Nepal and Bhutan. The transmission line of Bhutan's Tala project to northern India would be commissioned within a month, he said.
The company was also planning a foray in Indonesia, Cambodia, Ethiopia, Vietnam, Kenya, China, Bangladesh, Nigeria and Kazakhstan, he said. Power Grid was looking at three broad areas in these countris - consultancy work, running existing projects with management control and executing new transmission projects, he said, but did not give details.
On the development of a national grid, Singh said the entire grid would entail an investment of Rs 71,000 crore. The development of national grid would result in savings in investment of up to Rs 60,000 crore on account of reduced capacity addition requirement, he said.
The company is also executing rural electrification projects in more than 87,000 villages at a total investment of Rs 9,400 crore, he said.
First Published: Jun 16, 2006 17:08 IST