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Helped by strong addition to its transmission capacity, Power Grid Corporation of India posted 19 per cent higher income of ₹15,675 for the period ended March 2014. The growth in income is, however, lower than that achieved in the preceding two years.
PowerGrid, India’s principal transmission utility, has near monopoly on the country’s inter-state and inter-regional transmission network. Tariffs set by the Central Electricity Regulatory Commission provide it an assured return on its commissioned projects. Growth in revenue and, therefore, profit for PowerGrid is dependent on an expansion in its transmission capacity.
Asset growth at 19.7 per cent in 2013-14 was slower than the 26.5 per cent (on an average) increase achieved during 2011-13. The numbers for 2013-14 however exclude assets worth ₹1,850 crore completed in March, 2014 to be capitalised in April.
PowerGrid expanded its inter-regional transmission capacity by 6,300 MW to 38,550 MW and increased its transmission lines to 2.9 lakh circuit km (up 6 per cent from year-ago) during 2013-14.
For the current fiscal, PowerGrid has planned capital expenditure of ₹22,450 crore, which is in line with its 12th Five Year Plan target. In the past too, the company has fulfilled its annual capital investment targets. It will add another 7,300 MW to its inter-regional transmission capacity in 2014-15.
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