PGCIL may see Rs 37,500 cr capex in next two fiscals: Report
New Delhi: State-run transmission utility Power Grid Corp of India (PGCIL) is likely to see a capital expenditure of about Rs 37,500 crore in the next two fiscals, says a report.
Power Grid is into building power transmission lines, consultancy activities and also owns more than 25,000 kilometres of telecom network.
The firm is likely to see aggressive capex and capacity addition activities in next two fiscals, a report by HSBC Global Research, part of global banking major HSBC, has said.
This would be driven by projects under construction and orders for high capacity power transmission corridors (HCPTC) projects, among others.
"Management targets to reach capital expenditure of Rs 175 billion (Rs 17,500 crore) for FY'12 and Rs 200 billion (Rs 20,000 crore) for FY'13...," it said.
The firm has about Rs 28,000 crore worth capital works in progress. "... Given a 24-30-month project gestation, we believe this will result in accelerated capacity addition for FY 13-14," the report noted.
According to HSBC Global Research, Power Grid is expected to see a capital expenditure of Rs 51,000 crore in the 11th Plan Period (2007-12) against a target of Rs 55,000 crore.
"To date, total capex has amounted to Rs 480 billion (Rs 48,000 crore) and we expect the remaining Rs 30 billion (Rs 3,000 crore) to be spent in the next 50 days," the report released in the second week of February said.
"However, management has reiterated that it would be able to achieve the entire Rs 70 billion (Rs 7,000 crore) in remaining capex for the current plan," it noted.
Power Grid already has board approvals for investments worth about Rs 70,000 crore related to 12th Plan Period (2012-17) projects.
The entity raked in a profit after tax of Rs 809 crore in the three months ended December 2011 as compared to Rs 591 crore in the year-ago period.
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