Power Grid Corporation of India Ltd (PGCIL) plans to capitalize assets worth Rs.11,000 crore in FY23, according to a company presentation.
PGCIL’s capitalization target of Rs.11,000 crore is in excess of its capital expenditure (capex) target for FY23 that stands at Rs.8,000 crore.
In the first quarter (Q1: April to June) of FY23, PGCIL undertook capital expenditure of Rs.758 crore, on a standalone basis. On consolidated basis, which means including its subsidiaries, the capex figure stood at a much higher Rs.1482 crore during the same quarter.
Generally speaking, the standalone capex denotes that undertaken by PGCIL for RTM (regulated tariff mechanism) projects. These projects are those where PGCIL is the nominated project implementation agency. The consolidated capex includes that undertaken by PGCIL and its subsidiaries. These mostly indicate projects won by PGCIL under the tariff-based competitive bidding route.
In terms of capitalization, which means capital expenditure that has got converted into commercial assets, PGCIL did well in Q1 of FY23. On a standalone basis, capitalization stood at Rs.1,332 crore whereas the same figure on consolidated basis was Rs.1,345 crore. This indicates that most of the assets that turned commercial during the quarter represented PGCIL’s RTM projects.
During Q1 of FY23, PGCIL added the 765/400/220kV Bhuj-II GIS substation in Gujarat. The Central PSU also augmented transformation capacity at Bhadla and Fatehgarh (both in Rajasthan) to facilitate evacuation of renewable energy.
Also read: PGCIL Plans JV For Intrastate Network Upgrade
Dedicated line for bulk consumer
In an interesting development, PGCIL has signed an agreement with Reliance Industries Ltd (RIL) to build a dedicated transmission line from PGCIL’s Jam Khambaliya ISTS pooling station in Gujarat to RIL’s Jamnagar facilities in the same state. This line, with an estimated project outlay of Rs.250 crore, will be owned by PGCIL and the tariff will be recovered by PGCIL in conformity to CERC guidelines. This is the first such “dedicated consumer” transmission line for PGCIL, and the utility is looking for more such opportunities.
Readers may recall that in January 2022, T&D India had exclusively reported that CERC had given Reliance Industries Ltd the option of approaching PGCIL to build a dedicated transmission line for feeding RIL’s Jamnagar facilities. (Read full story)
