Power Grid

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POWERGRID is a state-owned electric transmission utility. It wheels about 51% of the total power generated in India on its transmission network – comprising around 90,000 circuit-km of transmission network and 145 Extra High Voltage Alternating Current (EHVAC) & High Voltage Direct Current (HVDC) sub-stations with a total transformation capacity of around 100,000 MVA. The World Bank has supported POWERGRID since its inception in 1989 during which time the company has become one of the world''s largest electricity transmission system operators. In addition to electric power transmission (including grid management, grid operation and maintenance activities), which forms its core business, the Company has also diversified into: (a) telecom, utilizing right of way on its Extra High Voltage Power Transmission Network infrastructure in the country. The telecom operation includes putting in place overhead optic fiber network using OPGW (Optical Ground Wire) on power transmission lines. POWERGRID is managing an all India Broad Band Telecom Network of about 25,000 Kms as well as intra city access networks across India; (b) electric power transmission engineering, procurement and construction consultancy services both within and outside India to governments and other utilities. POWERGRID has so far been assigned more than 300 consultancy assignments by national and international clients in construction of transmission lines, substations, load dispatch centers, distribution and rural electrification. The Company has undertaken/is executing 40 international consultancy assignments including in Afghanistan, Bangladesh, Bhutan, Dubai, Kenya Nepal, Nigeria and Srilanka; and (c) provision of O&M services to transmission utilities in India and other countries. POWERGRID has an Rs 100,000 crores (around US$ 22 billion) capital investment plan to be implemented over the next 5 years. In the next 12 months the Company’s investment plans include transmission systems for various generation projects including UMPP’s, IPP’s and grid-strengthening schemes across several states namely, Jharkhand, Orissa, Chhattisgarh and North-East. In order to generate resources to meet its capital expenditure program, POWERGRID is desirous of accessing international commercial financing. In this regard, POWERGRID has approached IFC to facilitate achieving its objective.IFC is considering partly finance, with a mix of A Loan and syndicated B loan, POWERGRID’s capital investment plan for the above referred investment (the “Investment”).