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PGCIL undertakes capex of over Rs.4,200 crore in H1 of FY24

 

Power Grid Corporation of India Ltd (PGCIL) has undertaken capital expenditure (capex) worth over Rs.4,200 crore during the first half (H1: April to September) of FY24.

According to an investor presentation filed on stock exchanges, PGCIL undertook capex worth Rs.4,246 crore in H1 of FY24 on a “consolidated” basis, much of it (amounting to Rs.2,740 crore) coming in the second quarter (Q2: July to September) of the year. Of the total capex,  Rs.2,517 crore, or nearly 60 per cent, was on a “standalone” basis.

Broadly speaking, “standalone” capex refers to that undertaken by PGCIL itself, while “consolidated” also includes that incurred by PGCIL’s subsidiaries. It can be interpreted that “standalone” capex is mainly associated with projects undertaken by PGCIL on regulated tariff mechanism (RTM) basis, while “consolidated” also includes projects implemented by PGCIL’s wholly subsidiaries under the tariff-based competitive bidding (TBCB) route.

During H1 of FY24, PGCIL achieved capitalization of Rs.3,997 crore on a consolidated basis, with a “standalone” share of 43 per cent. Capitalization refers to the monetary value of projects commissioned and turning into operational assets.  During Q2 of FY24, consolidated capitalization stood at Rs.2,381 crore. In this period, PGCIL added 3,100 MVA of transformation capacity, 306 ckm of transmission line and one substation. One TBCB project housed under “Powergrid Bikaner Transmission System Ltd” was commissioned during Q2 of FY24.

Also read: PGCIL Commissions Intrastate Scheme In Uttar Pradesh

Capex target for FY24

For the full year, FY24, PGCIL has targeted consolidated capex of Rs.8,800 crore. Of this, around 48 per cent has been achieved in H1 of FY24. According to G. Ravishankar – Director (Finance) & CFO, PGCIL is set to close FY24 with capital expenditure of over Rs.10,000 crore. Of the Rs.8,800 crore worth of capex targeted for FY24, around Rs.5,000 crore is expected to come from RTM (regulated tariff mechanism) projects.

In FY23, PGCIL had incurred consolidated capex of Rs.9,212 crore that was 1.7 per cent higher than the corresponding Rs.9,060 crore in FY22, and around 3 per cent higher than the targeted capex of Rs.8,800 crore. In recent history, PGCIL has recorded its highest capex of over Rs.15,000 crore in FY20.

 

 

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