In FY09 YTD, Power Grid has approved investments in transmission projects with estimated cost of Rs269b. This compares with total investment approval of Rs25b in FY08, and thus represents an increase of 11x. Post project approvals of Rs269b in FY09, projects under implementation now increases to Rs480b+, indicating that a large part of the targeted capex of Rs550b in 11th Plan has been taken up for implementation. This has improved visibility for Powergrid in terms of achieving ~85-90% of the targeted capex in the 11th Plan. Also, we believe that as these projects are taken up for implementation, project awards for T&D equipment suppliers like ABB, Crompton Greaves, Siemens, Areva, etc will be healthy.
During FY09, transmission projects with estimated cost of Rs269b have been accorded investment approval by Powergrid. This is part of the Rs500b+ projects under investment approval stage as at March 2008, and thus indicates that a significant part of the projects have been approved. This compares with total investment approval of Rs25b in FY08, and thus represents an increase of 11x.