Power Grid consortium bags 21 million contract from Ethiopia

NEW DELHI: State-owned Power Grid Corporation- led consortium has bagged a $ 21 million contract from Ethiopian Electric Power Service Corporation for undertaking its system upgrade.

Power Grid CorporationBSE 1.85 % has bagged this two-year contract in consortium with state-run NHPC and private power distribution company BSES, a top company official told PTI.

He said that the contract is for a period of two years. "We have taken over the management of their hydro station, distribution and transmission for system improvement," the official said.

The company which is targeting a revenue of Rs 200 crore from overseas in this financial year and has already earned Rs 130 crore, the official said.

"We have not invested in overseas markets, either we have taken up consultancy assignments or supplied equipment abroad so the rupee depreciation has not impacted us," the official said.

In another consortium, Power Grid Corporation has set up a joint venture company with the Nepal government, IL&FS and Satluj Jal Vidyut Nigam Ltd for power transmission. The company proposes to invest close to Rs 94 crore for setting up Indo-Nepal transmission corridor.

The company is also supplying power transmission equipment to Myanmar under $ 64 million supply contract.

Meanwhile, the Board of Directors earlier this month had approved the FPO (follow-on offer) proposal by raising 15 per cent of the fresh equity of the paid existing paid-up share capital.

The funds raised will be used for expansion plans, including transmitting power to the tune of 75,000 MW by 2017.