Powergrid to raise Rs 57 billion through bonds

Powergrid Corporation of India Limited (Powergrid) has approved a plan to issue bonds on a private placement basis in numerous tranches in 2023–2024, in order to raise up to Rs 57 billion.

The funds raised will be utilised for general business goals, providing inter-corporate loans to fully owned four subsidiaries (Power Grid Khetri Transmission System Limited, Power Grid Bhuj Transmission Limited, Power Grid Varanasi Transmission System Limited, and Power Grid Medinipur Jeerat Transmision System Limited), and partially financing the company’s capital expenditure requirements. The company plans to raise Rs 5 billion in the first tranche and another Rs 14 billion in the green shoe option.

In January 2022, Powergrid issued an expression of interest to conduct a detailed survey and soil investigation along the transmission line route to evacuate power from the 880 MW Kaza solar project in Himachal Pradesh.

In February 2021, Powergrid won three power transmission projects in Rajasthan in a competitive bidding process. The tender was floated as a set of three projects by REC to enable the evacuation of solar energy under Phase II of its transmission infrastructure programme. The transmission systems will be developed to evacuate power from 8.1 GW of solar capacity in the state.