PowerGrid plans to spend Rs 22,500 cr for expansion plans in FY16

Mumbai: State-run transmission utility Power Grid Corporation (PGCIL) is planning to invest Rs 22,500 crore this fiscal to fuel its expansion plans. [caption id=“attachment_2264080” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] “We are very well on track on our capex plans. This fiscal, we have earmarked an expenditure of Rs 22,500 crore for FY16, which we will use for expansion,” company’s chairman and managing director RN Nayak told reporters in Mumbai today. He further said the company has already deployed Rs 4,000 crore for various projects in the last two months. The company has earmarked a capital expenditure of up to Rs 1 lakh crore for five years, ending 2016-17. “Out of the capex for FY16, we have already spent Rs 4,000 crore in the last two months for undertaking various projects. We plan to maintain 70:30 debt equity ratio,” Nayak said. The company has also planned to raise up to Rs 12,000 crore through domestic bonds during the year. “This is a regular phenomenon. We keep raising funds as and when we require for two-three months. We have already raised Rs 3,000 crore. We will raise the remaining in tranches as and when the markets and rates of interest are favourable,” company’s Director (Finance) RT Agarwal said. He said the company has completely utilised the Rs 5,300-crore fund which it raised last year through follow-on public offer (FPO). The Navratna company has reported a 20 percent rise in its standalone net profit at Rs 1,412.48 crore for the quarter ended March 31 against Rs 1175.84 crore last fiscal. Its total income for the quarter increased to Rs 4,703.22 crore from Rs 3,986.28 crore in the corresponding period of previous year. For the year, the company reported a standalone net profit of Rs 4,979.17 crore and Rs 17,177.23 crore in revenues against Rs 4,497.42 crore and Rs 15,230.28 crore in FY13-14. PGCIL currently owns and operates transmission network of about 1,15,600 ckm and 192 extra high voltage double current (EHVAC) and high voltage double current (HVAC) substations having transformation capacity of more than 2,31,000 MVA. PTI