Power Grid Corporation of India Ltd (PGCIL) is well on track to meet its capital expenditure target of Rs.7,500 crore set for the current year FY22, noted K. Sreekant, the company’s CMD.
Addressing a virtual investor conference on the company’s performance in Q2 (July to September) and H1 (April to September) of FY22, K. Sreekant said that capital expenditure of Rs.3,695 crore has already been incurred during the first half of FY22.
Further, as of around November 10, 2021, some 60 per cent of the capex target was attained. The CMD further said that by December 31, 2021, PGCIL hoped to reach 90 per cent of the FY22 capex target, implying capital expenditure of around Rs.6,750 crore.
The capex discussed here is on “consolidated” basis, which implies that undertaken by PGCIL and its subsidiaries.
Capitalization
PGCIL witnessed a significantly high consolidated capitalization of Rs.13,275 crore during the first half (April to September) of FY22. Capitalization refers to commissioning of projects thereby turning them into commercial assets.
In H1 of FY22, PGCIL commissioned 2,100 ckm of transmission lines and 14,000 MVA of transformation (substation) capacity. PGCIL added 5,700 mw to India’s total interregional transfer capacity. As of September 30, 2021, the country’s total IR capacity stood at 95790 mw, out of which PGCIL had a share of over 85 per cent.
An important commissioning during Q2 of FY22 was the Jawaharpur-Firozabad transmission system in Uttar Pradesh, which was PGCIL’s first intrastate power transmission project, awarded under the TBCB modality. (Read project background).
Work in hand
As of September 31, 2021, PGCIL had work in hand of around Rs.27,500 crore. This represented Rs.10,300 crore of ongoing projects, around Rs.3,400 crore of newly awarded RTM projects and a big chunk of Rs.13,800 crore coming from TBCB projects. PGCIL was thus very much on track to achieve its FY22 capex target, K. Sreekant said.
The PGCIL CMD added that the business outlook remained positive with an estimated Rs.26,500 crore worth of projects expected to come up for bidding under the TBCB route.
