Shares of Power Grid Corporation of India Ltd. rose by nearly 4% to touch a day’s high of Rs 356.95 on 30 July, after the company announced plans for an undersea interconnection project worth up to Rs 40,000 crore with Middle Eastern countries.

After a weak June quarter with nearly flat revenues, the company expects only a 4-5% revenue increase in FY25, according to Chairman and Managing Director R K Tyagi. The company plans to invest Rs 18,000 crore this fiscal year to boost future growth.

He explained that earnings from transmission projects decrease as they age, so the company must commission new projects to achieve higher revenue growth.

The company is considering interconnected projects beyond the immediate neighbourhood, focusing on countries in the Middle East, according to Tyagi.
Discussions are ongoing with Oman, Saudi Arabia, and the UAE for these interconnections.

The company has a ‘pulling station’ near the Arabian Sea in Gujarat’s Bhuj, which will be connected to a similar station in a Middle Eastern country.

A high-voltage direct current cable with a capacity of up to 2,500 MW will be laid on the seabed. The project will cost Rs 35,000-40,000 crore and take up to six years to complete.

The market capitalisation of the company climbed to Rs 3.29 lakh crore.

At 11:49 AM, the shares of Power Grid were trading 3.31% higher at Rs 353.75 on BSE.

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