PROJECT

Projects

Summary of Investment Information

Project Number

34442

Company Name

POWER GRID CORPORATION OF INDIA LIMITED

Date SPI Disclosed

Jun 2, 2014

Country

India

Region

South Asia

Projected Board Date

Nov 21, 2013

Environmental Category

A - Significant

Status

Completed

Last Updated Date

Dec 4, 2021

Department

Regional Industry - INF Asia & Pac

Industry

Infrastructure

Previous Events

Approved : Nov 21, 2013
Signed : Nov 25, 2013
Invested : Dec 4, 2013

Sector

Electric Power Transmission

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.

Sponsor / Cost / Location

Development Impact

E&S Category Rationale / Risks and Mitigation