Power Grid Corporation of India Ltd (PGCIL) has incurred capital expenditure of over Rs.1,500 crore during the first quarter (Q1: April to June) of FY24.
In an investor presentation discussing the company’s performance in Q1 of FY24, PGCIL said that it incurred capital expenditure of Rs.1,504 crore in the said quarter. This capex is at the “consolidated” level which means that it includes capex incurred by its subsidiaries. Typically, these subsidiaries are project SPVs meant to undertake TBCB projects. On a standalone basis, PGCIL’s capex stood at Rs.944 crore.
At the consolidated level, PGCIL’s capitalization was Rs.1615 crore, which was higher than the capex. Capitalization broadly refers to completion of capital expenditure, leading to creation of operational assets. At the standalone level, capitalization was Rs.652 crore.
Thus, it could be inferred that PGCIL commissioned roughly Rs.1,000 crore worth of assets through TBCB projects.
On a consolidated basis, PGCIL has targeted capital expenditure of Rs.8,800 crore for FY24.
Assets commissioned
During Q1 of FY24, PGCIL added 1,428 ckm of transmission lines to its network. The Central PSU also commissioned two new substations, which according to information available with T&D India were both of the GIS variety – located at Meerut and SImbhaoli (both in Uttar Pradesh). PGCIL also added 4,435 MVA of new transformation capacity. This was mainly concentrated at the existing substations of Bhadla and Bikaner, both in Rajasthan.
With respect to TBCB projects, PGCIL fully commissioned an interstate scheme in Rajasthan, housed under “Powergrid Bikaner Transmission Systems Ltd.” PGCIL also completed key elements of “Powergrid Meerut Simbhaoli Transmission Ltd,” an intrastate TBCB scheme in Uttar Pradesh.
According to K. Sreekant, CMD, PGCIL, three elements out of four of the intrastate scheme in UP have been commissioned. The fourth element is facing legal impediments on account of right-of-way related issues but an early resolution is expected nevertheless.
PGCIL is very active in the intrastate TBCB space in Uttar Pradesh. Apart from the Meerut-Simbhaoli scheme discussed above, PGCIL is developing three other projects housed under Powergrid Jawaharpur Firozabad Transmission Ltd, Powergrid Rampur Sambhal Transmission Ltd and Powergrid Gomti Yamuna Transmission Ltd.
Also read: PGCIL Wins Two ISTS Schemes Under TBCB Mode
Asset Block
As of June 30, 2023, PGCIL, together with its subsidiaries, had 1,74,625 ckm of operational transmission lines and 274 substations with an aggregate transformation capacity of 5,08,350 MVA. The 274 substations included 18 HVDC substations and 62 of the 765kV rating. As of given date, PGCIL had an interregional transfer capacity of 97,290 mw, accounting for 85 per cent of India’s total.
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