Power Grid Corp. has currently Rs 1.14 lakh crore of work in hand, and it plans to complete around Rs 60,000–65,000 crore of projects in two-and-a-half years, Chairperson RK Tyagi said on Monday.
Barring some that have a four–five-year execution timeline, most projects have an execution timeline of 24 months currently, the managing director said at a post-earnings press conference in Mumbai.
The power transmission company is aiming to complete projects worth Rs 18,000 crore in the current financial year. Remaining contracts worth Rs 40,000–42,000 crore will be completed in by March 2026. The financial recognition of the completed projects can be rolled off to the next fiscal, according to Tyagi.
Powergrid expects the revenue to grow 10–12% in the current fiscal, he said. Its consolidated net profit rose 3.5% to Rs 3,724 crore in the first quarter, meeting analysts' estimates.
File photo of RK Tyagi (Source: Power Grid Corp/LinkedIn)
File photo of RK Tyagi (Source: Power Grid Corp/LinkedIn)
Capital Expenditure
The company has seen a subdued capital-expenditure outlay of Rs 8,000–10,000 crore in the last three years. However, this will be picking up in the coming years, Tyagi told NDTV Profit.
Powergrid has announced a capex outlay of over Rs 2.07 lakh crore till 2032. Out of this estimated capex, 91% will be for the transmission business, while the balance is kept aside for other business. Its capex stands at Rs 18,000 crore in the current fiscal, with 90% of the capex to be spent on the transmission business.
Diversification
Apart from the company's core transmission business, Powergrid is to set up an 85-megawatt solar plant. The company has also started pilot projects in green hydrogen and battery storage — two areas that it has identified as future growth drivers.
The company is also going to install 69 lakh smart meters for Uttar Pradesh, Madhya Pradesh and Gujarat, Tyagi said.
Powergrid has also entered the data-centre space. The company will set up a data centre of 1,000 racks and is also exploring the possibility of setting up more data centres in cities like Hyderabad and Chennai.
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