PowerGrid inks pact with SBI for Rs 50 bn loan

State-owned Power Grid Corp said today that it has entered into an agreement with State Bank of India for Rs 5,000 crore term loan for meeting its capital expenditure.

In a BSE filing it said the company has entered into a Term Loan facility agreement for Rs 50 billion with SBI yesterday for meeting "capital expenditure for expansion/ renovation and setting up various undergoing and new transmission and other projects in the company and in identified SPVs/JVs (special purpose vehicles/joint ventures) of the Company".

Power Grid has planned a capital expenditure of Rs 250 billion in the next fiscal. Its budgeted capital expenditure for the current fiscal is also Rs 250 billion.

The company is mainly into power transmission and is a central transmission utility of the country.