State-owned electric utility company,Power Grid Corporation of India Limited (PGCIL),has proposed to invest Rs 1 lakh crore during the 12th Plan period,nearly double the investment during the 11th Plan (2007-2012).
Capital investment of Rs 42,000 crore for development of inter-state transmission systems has already been made in the 11th Five Year Plan. A further Rs 13,000 crore is to be invested by the end of the next financial year for the 11th Plan targets to be met,according to RN Nayak,chairman and MD of PGCIL.
The additional capital investment for the 12th Plan is to facilitate and enhance transmission lines across the country and potential development of lines in overseas markets, Nayak said.
Transmission links have already been established with Bhutan and Nepal,Bangladesh is under implementation and talks are underway with Sri Lanka.
The inter-regional transmission capacity is expected to increase from 28,000 MW to 65,000 MW between the respective five year plans,23,000 MW of which has already been completed.
PGCIL currently operates over 87,000 circuit kms of transmission lines,as well as 139 sub-stations with transformation capacity of more than 96,000 MVA,which are also expected to increase following the 12th Five Year Plan. The company has reported a net profit of Rs 709 crore for Q2,FY 2011-12,an increase of 9 per cent when compared to the corresponding quarter of last year,and similarly an increase in total income of 11 per cent to Rs 2,459 crore.
Following PGCILs FPO in November 2010,the institutional and public investment in the firm has increased to 30.58 per cent.
The firm would need to raise liquidity through the sale of more government shares or increase its debt-equity ratio to fund its expansion plan,VM Kaul,director at PGCIL,said.
This would require a restructuring of the firms financial policies.