The public sector Power Grid Corporation of India on Tuesday said it was in talks with the World Bank and Asian Development Bank to raise $1.2 billion in debt.

At a press conference here, Power Grid Corporation’s Chairman R P Singh said the company is simultaneously in talks with both the banks for raising over $1 billion each without a bank guarantee. The negotiations with the World Bank for $600-million debt were likely to conclude in February. “This will be finalised within the next few months,” Mr Singh said.

Further, he added that the company plans to spend over Rs 8500 crore in the next fiscal to expand its transmission network.  

Focussing on telecom

In a bid to expand its telecom revenue, which currently for the year 2007-08 rose to about Rs 90 crore, Power Grid plans foraying into telecom and entertainment business, and is scouting for tie-ups in the sector. This includes data centre management, gigabyte knowledge tranmission, tower business and voice-over-internet. Upon successful venturing into these new business areas, Mr Singh said the company’s telecom revenue is expected to go up to Rs 500 crore per annum in the next two to three years.

As part of helping independent power producers in building associated transmission systems after the success of Tala Project in a JV with Tata Power, the Power Grid is likely to sign joint ventures with IL&FS and few more IPPs.  

It has already established two JVs with Torrent and Jaypee Groups with equity participation of 26 per cent each. Another JV is with Anil Dhirubhai Ambani Group’s Reliance Energy for implementation of Transmission System associated with Koldam & Parbati-II at an estimated cost of Rs 660 crore.