Power Grid Corporation of India Ltd (PGCIL), in a recent investor presentation, has estimated the value of work-in-hand at over Rs.350 billion.
The presentation, discussing the company’s performance in Q1 (April to June) of FY22, has estimated works-in-hand at Rs.35,100 crore, as of end-June 2021.
Out of this, ongoing projects accounted for Rs.14,700 crore while new projects took up another Rs.3,600 crore. The remaining Rs.16,800 crore was attributed to TBCB projects. TBCB (tariff-based competitive bidding) projects are implemented by special purpose vehicles, which are wholly-owned subsidiaries of PGCIL.
PGCIL has also valued “immediate” business opportunities at Rs.10,800 crore. These include Rs.9,300 crore worth of interstate/interregional projects, linked to evacuation systems associated with renewable energy projects. These include both projects under the TBCB route and those awarded to PGCIL on RTM (regulated tariff mechanism).
The remaining Rs.1,500 crore comes from intrastate TBCB projects. It may be mentioned that PGCIL very recently commissioned its very first intrastate power transmission project, awarded under the TBCB mode. The project in question was the Jawaharpur-Firozabad transmission scheme in Uttar Pradesh.
It may be worth mentioning here that 33kV infrastructure that is now considered as “distribution” infrastructure might now be classified as “transmission”. A government committee has recommended this new modality, it is learnt. If this is implemented, state power grids will become more comprehensive. It will also liberate state government discoms, which are traditionally in poor financial health, from maintaining 33kV infrastructure. More funds could potentially be available for the downstream distribution network.
Addressing an investor conference, K. Sreekant, CMD, PGCIL, said that the Leh-Ladakh transmission scheme and power transmission schemes to evacuate 20 GW of renewable energy in Rajasthan, are the biggest opportunities, likely to materialize in the next 2-3 years.
Also Read: PGCIL projects capital expenditure of Rs.7,500 crore for FY22
Outstanding dues
As of June 30, 2021, PGCIL had outstanding dues (payable to PGCIL) of around Rs.7,080 crore. Of this, Rs.3,333 crore represented dues outstanding for more than 45 days (technically known as “overdue” amount) while the remaining Rs.3,747 crore was outstanding for a period less than 45 days. For a frame of reference, overall dues stood at Rs.8,243 crore, as of June 30, 2020.
(Featured photograph is for illustration only)