Power Grid Launches IPO to Expand Transmission by 23,000 MW

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Researched by Industrial Info Resources (Sugar Land, Texas)--The Power Grid Corporation of India Limited (PGCIL) plans to expand the national grid capacity to transmit 37,000 megawatts of electricity by 2012. The corporation will invest $13.4 billion over the next five years on the project and hopes to raise more than $730 million in an initial public offer (IPO), which will open and close this week. After the IPO-share issue, the federal government will continue to hold 86.36% of shares in the company.

PGCIL owns and operates 61,875 kilometers of transmission lines. The 15 projects planned currently would enhance the firm’s transmission system by 13,022 kilometers and would require $3 billion. The company has an inter-regional transfer capacity of about 14,000 MW and will add 23,000 MW of carrying capacity. Serving the network, PGCIL has 106 electrical substations. The company transmitted about 298 billion units of electrical power, about 45% of total power generated in India, in the last fiscal year.

Between 2003 and 2007, PGCIL invested $4.4 billion and now has 45 transmission projects at various stages of development with a total investment value of $6.6 billion. The projects are scheduled to be completed in 2009 and include more than 30,000 kilometers of transmission lines and new substations. The increased capacity could provide $1.2 billion in revenues for the grid, which would be 43.5% higher than 2007 revenues.

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