Power Grid shares surge 4% following successful bids for transmission system projects

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Power Grid shares surge 4% following successful bids for transmission system projects

Team FS

18/Apr/2024

Key Points:

Market Surge: Power Grid Corporation of India sees a nearly 4% surge in its share price following successful bids for inter-State transmission projects, bolstering the nation's energy infrastructure.
Strategic Expansion: Projects in Rajasthan and Gujarat aim to establish robust transmission systems for evacuating power, with additional Letters of Intent received for similar ventures in these regions.
Financial Moves: Approval for raising bonds up to Rs 12,000 crore signals the company's commitment to financing expansion and enhancing operational capabilities.

Power Grid Corporation of India, a key player in the nation's energy sector, witnessed a significant uptick in its share price as it surged nearly 4% in early trade on April 18. The surge follows the company's triumph in tariff-based competitive bidding for establishing inter-State transmission systems, marking a pivotal moment in India's quest to strengthen its energy infrastructure.

Driving Growth through Transmission Projects
The successful bid by Power Grid Corporation encompasses transmission projects in Rajasthan and Gujarat, aimed at establishing robust systems for evacuating power from specific areas in these regions. These projects, executed on a build, own, operate, and transfer (BOOT) basis, signify the company's commitment to expanding its operational footprint and enhancing energy transmission capabilities across the nation. Additionally, the receipt of Letters of Intent for similar projects underscores Power Grid Corporation's strategic focus on driving growth and efficiency in key regions of India.

Financial Strategy for Expansion
In a move to support its ambitious expansion plans, Power Grid Corporation's committee of directors for bonds has approved the raising of bonds up to Rs 12,000 crore during FY 2024-25. These bonds, to be issued as unsecured, non-convertible, non-cumulative, redeemable, taxable POWERGRID Bonds, reflect the company's proactive approach to financing expansion initiatives and strengthening its financial position to support future growth endeavors.

Commissioning of Neyveli Transmission Project
Adding to its list of achievements, Power Grid Corporation recently announced the commissioning of a transmission project for evacuating power from 2X500MW Neyveli Lignite Corp. Ltd TS-1 (Replacement) (NNTPS) in Neyveli, Tamil Nadu. With this project coming into operation on February 10, 2024, the company further solidifies its role in facilitating efficient power transmission and distribution across the country.

Charting a Path towards Sustainable Energy
As Power Grid Corporation of India continues its journey towards bolstering India's energy infrastructure, the successful bids for transmission projects, coupled with strategic financial moves, position the company as a key contributor to the nation's energy security and sustainability goals. With a steadfast commitment to innovation, efficiency, and excellence, Power Grid Corporation remains at the forefront of driving transformative change in India's energy landscape, one strategic initiative at a time.

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Power Grid shares surge 4% following successful bids for transmission system projects

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