PGCIL plans Rs.8,000 crore capex in FY23

Power Grid Corporation of India Ltd (PGCIL) has planned capital expenditure of around Rs.8,000 crore for the ongoing fiscal year, FY23.

In FY22, PGCIL had incurred capital expenditure (capex) of Rs.9,060 crore. This capex includes that done by PGCIL and also its subsidiaries. Typically, these subsidiaries are special purpose vehicles incorporated for the development of transmission schemes won under the tariff-based competitive bidding (TBCB) route.

As against the capex of Rs.9,060 crore, asset capitalization was Rs.20,695 crore. Asset capitalization refers to projects that are commissioned and start commercial operations. Asset capitalization in FY22 towards TBCB projects was around Rs.5,559 crore while that for PGCIL alone (regulated assets) was Rs.15,136 crore.

In FY22, PGCIL commissioned 5,450 ckm of transmission lines. A total of seven substations with an aggregate transformation capacity of 43564 MVA were commissioned during the year. The addition to interregional transfer capacity stood at 7,200 MW. [This is on consolidated basis – PGCIL and its subsidiaries.]

It may be noted that PGCIL witnessed lower capex and capitalization in FY22 compared with FY21. (See table).

As of March 31, 2022, PGCIL had 1,352 transmission lines aggregating 1,72,437 ckm. Besides, the Central PSU owned 265 substations with aggregate transformation capacity of 474457 MVA. PGCIL had interregional transfer capacity of 97290 MW, accounting for over 85 per cent of the country’s total.

 

TBCB subsidiaries

In an investor presentation, Mohammed Taj Mukarram, Director – Finance, PGCIL, said that as of March 31, 2022, PGCIL had 18 TBCB subsidiaries. Of these, six were commissioned in FY22 and the remaining 12 were under stages of implementation. These 12 subsidiaries included three that were won in FY22.

Mukarram added that in FY23 (after March 31, 2022), PGCIL won an intrastate power transmission scheme under the TBCB route, in Uttar Pradesh. (Read more).

 

Asset monetization

In FY22, PGCIL monetized around Rs.8,370 crore by sale of its operational TBCB projects to Power Grid Infrastructure Investment Trust (PGInvIT). It may be noted that the 18 TBCB subsidiaries discussed above does NOT include these five monetized subsidiaries.

 

New subsidiary

Mukarram also informed that in Q4 of FY22, PGCIL incorporated a new subsidiary “Powergrid Energy Services Ltd” that will offer engineering consultancy services.