Power Grid gets nod to raise Rs 13,000 cr

Published on May 19, 2015 01:11:02 AM
Business
Power Grid Corporation has got shareholders' approval to raise up to Rs 13,000 crore from domestic and external sources through issue of secured /unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement during this fiscal year 2015-16 in up to eight tranches of `2,000 of bonds with or without green shoe option, the company said in a statement on Monday.

As per the approved resolution, the shareholders also approved the resolution to provide guarantee or security in connection with any form of debt of up to Rs 1,400 crore to project special purpose vehicles (SPVs) acquired and to be acquired by the company under tariff based competitive bidding of Vindhyachal Jabalpur Transmission, Gadarwara A Transco and Gadarwara B Transmission, the statement added.

Shareholders have also approved the special resolution of the board to render all inputs and services on cost to cost basis of the project. The firm is in discussions with power and finance ministries as well as the World Bank regarding funding assistance of transmission systems for evacuation of power from the solar parks.