The Power Grid Corporation of India (POWERGRID) said it would raise unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds worth ₹6 billion (~$72.86 million) through private placement.

Government-owned POWERGRID is India’s largest electric power transmission utility and operates about 86% of the country’s inter-regional networks.

The funds will be raised through the securitization of cash flows for ten of its special-purpose vehicle, and an operational subsidiary ­POWERGRID NM Transmission.

The subsidiary has been engaged in implementing Nagapattinam-Salem 765 kV D/C Line (about 203 kilometers) and Salem- Madhugiri 765 kV S/C Line (about 220 kilometers).

Nagapattinam-Salem 765 kV D/C Line has been under commercial operation since October 2016, and Salem- Madhugiri 765 kV S/C Line has been under commercial operation since January 2019.

The base issue size of the bonds will be ₹1 billion (~$12.14 million), whereas the greenshoe option will be ₹5 billion (~$60.72 million). The bonds will be redeemable at par in 40 equal installments, and the interest payment will be quarterly.

Recently, the board of POWERGRID approved raising unsecured, non-convertible, non-cumulative, redeemable, and taxable bonds for ₹9 billion (~$109.73 million) through private placement. The funds will be raised through the securitization of cash flows of its special purpose vehicle — POWERGRID Mithilanchal Transmission – until FY 2033.

Earlier this month, POWERGRID won three interstate transmission system (ISTS) projects in the tariff-based competitive bidding process. The company won the first project for a transmission system to evacuate power from solar energy zones in Rajasthan (8.1 GW) under Phase-II Part E on a build, own, operate, and maintain basis. The project involves establishing a 756 kV D/C transmission line along with associated line bays in the state.

Also, in March, the government accepted the recommendations of a task force on modernizing India’s power transmission system, paving the way for real-time monitoring, automated grid operation, and increased renewables integration into the power mix.

Other recommendations by the task force related to equipping the transmission system for better situational assessment, enhanced transmission capacity utilization, centralized and data-driven decision-making, reduced forced outages through self-correcting systems, and greater resilience against cyber-attacks and natural disasters.

Last year, POWERGRID  Chairman and Managing Director K Sreekant had said India plans to invest ₹2.8 trillion ($34.2 billion) by 2030 to set up an ISTS network to evacuate renewable energy. The investment, comprising grants and funds, aims to strengthen the infrastructure at the distribution level and implement various cost-reduction measures. The investment will primarily address two issues: strengthening the infrastructure at the distribution level and implementing multiple cost-reduction measures.