The Hindu : Business : Power Grid to set up base in Dubai

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Friday, Nov 02, 2007
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Power Grid to set up base in Dubai

Special Correspondent

Eyes stake in Philippines transmission system

R. P. Singh

NEW DELHI: Buoyed by the excellent rating given by the Power Ministry for its performance during the year, power transmission utility Power Grid Corporation Limited (PGCIL) on Thursday announced that it is setting up a base in Dubai and is eyeing up to 20 per cent stake in Philippines National Transmission Company for $800 million.

Talking about the expanding horizons and further plans, PGCIL Chairman and Managing Director, R. P. Singh, said that the idea to set up a base in Dubai was to target consultancy and infrastructure related projects in West Asia. In addition, he said the company was looking aggressively at Saudi Arabia and Africa, including South Africa for managing system operations and handling transmission and distribution projects.

Mr. Singh said the corporation had submitted the expression of interest for picking a stake anywhere from 5-20 per cent in Philippines National Transmission Company, whose total valuation is being estimated at $4 billion. “We are looking at expanding our operations abroad in a big way and increase overseas stake. If the deal in Philippines comes through, it will give us 18 per cent return annually, against 14-15 per cent in the country,” Mr. Singh added.

The Dubai office will be opened within a fortnight.

West Asia holds a lot of importance to us and the business prospects are quite huge. We expected a substantial amount of revenue from this region and that is why a Dubai office is being opened,” he added.

The corporation has posted a net profit of Rs. 371.22 crore for the second quarter ended September 30, 2007. Its total income stood at Rs. 1,108.10 crore.

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