Project Description
The Power Grid Corporation of India Limited (“Power Grid” or “the Company”) is India’s inter-state and inter-regional transmission utility, majority owned by the Government of India (GOI), and plays a critical role in strengthening the country’s transmission infrastructure.
Power Grid being the national transmission utility has a capital expenditure plan of US$16 billion during the FY13-17 period (the “Project”) for further development of national grid. In order to fund the Project, Power Grid needed to raise about US$1 billion of equity. Simultaneously, the GOI divested 4 percent of its existing shareholding to help meet its disinvestment targets for the current fiscal year, reduce its fiscal deficit and help anchor the commercial orientation of a key enterprise.
The Company had requested that IFC support the project by participating as an investor in the FPO. Accordingly, IFC made an equity investment of US$20.4 million through its participation in the FPO.