State-run firm’s shareholders clear resolution to raise funds

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power-electricityPower Grid Corporation (PGC) has got approval of the shareholders to raise Rs 13,000 crore from domestic and external sources during the current financial year.

“The shareholders have approved a special resolution “to raise the funds in Indian rupee or any other acceptable currency so long as it is permitted by the Reserve Bank of India up to Rs 13,000 crore from domestic/external sources,” the company stated on Monday.

The shareholders also approved to provide guarantee or security in connection with any form of debt of up to Rs 1,400 crore for recently acquired project Vindhyachal Jabalpur Transmission, Gadarwara.

As per the approved resolution, funds would be raised through secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement during 2015-16 up to eight tranches of up to Rs 2,000 of bonds with or without green shoe option.

Last month, the PGC’s Board of Directors approved the proposal to raise Rs 13,000 crore through issuance of bonds subject to shareholders’ approval.

The corporation acquired the project from REC Transmission Projects a special purpose vehicle in February through tariff based competitive bidding.

The shareholders have also approved a special resolution of the board to render all inputs and services on cost to cost basis of the project.

Meanwhile, the state-run firm is in discussions with power and finance ministries as well as the World Bank regarding funding assistance of transmission systems for evacuation of power from the solar parks.

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