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September 05, 2007 15:02 IST
Power Grid Corporation of India Ltd, which is hitting the stock market with its initial public offer next week, plans to mobilise about $3 billion (Rs 12,500 crore) from World Bank and ADB to fund various projects during the 11th Five-Year plan.
PGCIL planned to take a loan of about $2 billion (Rs 8,350 crore) from World Bank and $1 billion (Rs 4,150 crore) from Asian Development Bank [Get Quote], Power Minister Sushilkumar Shinde told Rajya Sabha in a written reply.
The country's biggest transmission utility took the first tranche of $400 million from World Bank in December 2006 and is considering to avail the second tranche of $600 million during 2007.
ADB's $1-billion loan is to part-finance the National Grid Development Programme, which will cost $2.57 billion. ADB has proposed to provide a multi-trache sovereign guaranteed loan of $800 million and a non-sovereign loan of $200 million.
Shinde said the sovereign loan would be under the multi-tranche financial facility of ADB, whereby the agency provides individual loans to finance the sub-projects as and when they are ready for financing and a request is made.
Power Grid Corp will launch its IPO on September 10 for raising an estimated Rs 3,000 crore (Rs 30 bilion).
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