Power Grid Corporation of India Ltd (PGCIL) expects a significant jump in its capital expenditure in FY25 and thereafter.
Addressing an investor conference discussing the company’s performance in Q2 and H1 of FY23, K. Sreekant, Chairman & Managing Director, PGCIL, said that while capex this year and the next would remain more or less the same as in the previous year, there will be a significant growth in capital expenditure in FY25 and beyond.
Giving details, Sreekant said that for the current year, FY23, capital expenditure would be around Rs.8,800 crore which would be at par with that in FY22. In FY24, this capex figure would be maintained. However, in FY25 and beyond, PGCIL is projected to incur capex of over Rs.12,500 per year, the top official said.
Based on estimates made by Central Transmission Utility India Ltd (CTUIL) in its “Rolling Plan 2027-28 (Interim Report),” an investment of Rs.1,40,000 crore is likely to take place towards ISTS expansion during the five-year period from FY23 to FY27 (both inclusive).
According to K. Sreekant, a similar quantum of investment – around Rs.1,40,000 crore – is expected in ISTS expansion during the three-year period from FY28 to FY30. In keeping with this, PGCIL is also expected a commensurate step-up in its capital expenditure.
Performance in FY23
In the first half (H1: April to September) of FY23, PGCIL undertook capital expenditure of Rs.3,219 crore on consolidated basis. This includes PGCIL’s capex on all types of projects – RTM (regulated tariff mechanism) as well as TBCB (tariff-based competitive bidding). Capitalization, which stands for the quantum of capital investment put into commercial operation, stood at Rs.3,133 crore.
During H1 of FY23, PGCIL commissioned two TBCB-based projects. One was an ISTS project housed under “Powergrid Medinipur Jeerat Transmission Ltd” while the other was an intrastate scheme in Madhya Pradesh developed under the project SPV “Powergrid Bhind Guna Transmission Ltd.”
Also read: PGCIL Commissions Intrastate TBCB Project In Madhya Pradesh
Work on hand
As of September 30, 2022, PGCIL had an estimated volume of Rs.45,700 crore in terms of work on hand. This included Rs.8,200 crore towards ongoing projects, Rs.23,500 crore for new projects and another Rs.14,000 crore for TBCB projects. According to information available with CEA, as of September 30, 2022, PGCIL was involved in 23 interstate transmission projects on TBCB basis. Of these, 14 were completed and eight were under construction. One project stood officially cancelled.
