The Power Grid Corporation of India Limited has emerged victorious in a significant inter-state transmission project bid, it said on Friday.
What Happened: The Power Grid Corporation of India Limited has been announced as the successful bidder in the tariff-based competitive bidding. This win allows the corporation to establish an inter-state transmission system for the “interconnections of Bhadla-III & Bikaner-III complex” on a build, own, operate, and transfer (BOOT) basis. The company received the Letter of Intent (LoI) on Thursday, it added in the press release.
The project involves the construction of a 765-kilovolt D/C transmission line that will interconnect Bhadla-III & Bikaner-III substations. Additionally, it includes associated bay extension works at these substations in Rajasthan.
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The PSU posted its results for the April to June quarter last week. The company's net profit for the quarter came in at ₹3,723.92 crore, an increase of around 3.5% compared to the same quarter last year. Its revenue stood at ₹11,006 crore. Power Grid in the earnings call increased capex outlay to ₹18,000 crore in FY25. The company also put aside a ₹2.07 lakh crore outlay for up to 2032.
Earlier, S&P Global reaffirmed its ‘BBB-' rating for the company. The financial health of the Indian electricity transmission utility is poised to strengthen, bolstered by strong regulated returns, the commissioning of new projects, and high collection efficiency, S&P said. On the other hand, the agency upgraded Power Grid's stand-alone credit profile (SACP) to ‘BBB+' from ‘BBB'. The ratings agency is of the view that Power Grid possesses the financial strength to handle increased capital expenditure (capex) and dividend payouts in the coming three years.
Price Action: Shares of Power Grid Corporation closed 0.97% lower at ₹357.60 on Friday.
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