New Delhi: State-owned PowerGrid has got shareholders’ approval for raising up to ₹20,000 crore through bonds or debentures on private placement basis in 2019-20.
The proposal to raise funds up to ₹20,000 crore from domestic market through issue of secured /unsecured, non-convertible, noncumulative/ cumulative, redeemable, taxable/tax-free debentures/bonds under private placement during 2019-20 in up to twenty tranches/offers was listed on the agenda of its annual general meeting on held 18 September. The proposal was approved with requisite majority, the company said in a BSE filing.
The board in its 355th meeting held on 10 July 2018, approved raising of ₹20,000 crore in up to twenty tranches in 2019-20 for capital expenditure, providing inter-corporate loans to wholly owned subsidiaries and for general corporate purposes.
An amount of ₹25,000 crore to ₹30,000 crore is being considered as expected capital expenditure during 2019-20.
In order to have a debt equity mix of 70:30, an amount of ₹17,500 crore to ₹21,000 crore is estimated to be mobilised as debt and balance ₹7,500 crore to ₹9,000 crore from internal resources during the next fiscal.
The borrowing for 2019-20 will be within overall borrowing limits of ₹1,80,000 crore and the board recommended passing of the resolution.
In a separate filing, the company said its board Thursday approved proposals to invest ₹659.83 crore in various projects. These include ‘North Eastern Region Strengthening Scheme-VIII (NERSSVlll)’ at an estimated cost of ₹221.36 crore with commissioning schedule within 30 months and works associated with new WR-NR 765kV Inter-Regional Corridor at an estimated cost of ₹264.91 crore with commissioning schedule of 32 months.
The board has also approved investment for communication system under Eastern Region Fibre Optic Expansion Project at an estimated cost of ₹47.19 crore.