Power Grid seeks to borrow US$2bn from World Bank

Power Grid Corp is seeking to borrow as much as US$2 bn for its network expansion, according to a report. The grid operator, based in Gurgaon near New Delhi, may sign agreements with the World Bank for a US$1 bn loan by June. The report stated that the company is seeking government approval for a US$1 bn loan from Asian Development Bank.The company still needs to raise Rs157 bn, part of which may come from the local bond market. Power Grid delivers about 45% of the electricity generated in the country to consumers and plans to spend Rs550bn on expansion in the five years to 2012, report adds. India plans to add 60,000 kilometers (37,300 miles) of transmission lines by 2012 to carry 60% of the power generated, the World Bank said in March last year. The expansion, coupled with the construction of power plants, will increase the share of manufacturing in India’s gross domestic product.