REC - Funding Growth

State-owned power sector lender, Rural Electrification Corporation (REC), is exploring the option of funding power purchases on the Indian Energy Exchange (IEX), the country’s largest power exchange. The company, which earlier restricted itself to financing power generation projects and distribution utilities projects, has shown an interest in spot electricity market deals in the wake of the power shortage situation.

In the current financial year, REC has raised about Rs16000 crore, the majority of which was accounted for by domestic rupee bonds. The  company had proposed to the government that it be allowed to raise USD 1 billion through foreign currency convertible bonds. It is still waiting for the government’s approval on the matter.

"To accelerate growth, we are focussing on expanding the business of financing power sector projects, to include projects having backward and forward linkages to power projects. Besides, we are also developing new opportunities to have fee-based income from other allied businesses, like consultancy." - HD Khunteta - CMD, REC

ONGC - Interested In JV With RINL, BHEL

India’s leading oil and gas PSU, Oil and Natural Gas Corporation (ONGC), has expressed a keen interest in partnering Rashtriya Ispat Nigam (RINL) and Bharat Heavy Electricals (BHEL) in seamless tubes manufacturing plant at Vizag, Andhra Pradesh. Talks are on between the concerned parties.

GAIL - Keen On Buying Stake In GGCL

GAIL India is eyeing a controlling stake in British gas major BG’s subsidiary in Gujarat, as the state-run company prepares to compete with oil major BP and Reliance in the gas marketing business. The two companies are already partners in Mahanagar Gas, which distributes gas in Mumbai. BG is planning to sell its 65 per cent stake in Gujarat Gas Company (GGCL), which it had acquired in 1997 for Rs170 crore.

PGCIL - One Grid, Many Avenues

Power Grid Corporation of India (POWERGRID), a Navratna PSU under the Ministry of Power and the Central Transmission Utility (CTU) of the country, has commissioned a transmission system for the evacuation of power from the first Ultra Mega Power Project (UMPP) in the country at Mundra, Gujarat, at an estimated cost of about Rs5000 crore. Power Grid has posted a net profit of Rs709 crore for the second quarter of FY 2011-12, an increase of nine per cent against Rs651 crore reported during the corresponding quarter ended September 30, 2010. The total income for the July-September 2011 quarter rose to Rs2459 crore, up 11 per cent from Rs2223 crore in the year-ago period. For the first six months of FY 2011- 12, the total income and net profit stood at Rs4800 crore and Rs1414 crore respectively.