Mahatransco plans a IPO

DNA reported that Maharashtra State Electricity Transmission Co Ltd (Mahatransco) has lined up an over Rs16,000 crore expansion for strengthening the grid and evacuating power from plants of both state generation company and private producers that are coming up in the state.

The company plans a 138 new substations with transformation capacity of 34,805 MVA and 16,530 circuit kilometres (Ckm) of EHV lines till 2015-16. This includes setting up 89 substations with transformation capacity of 20,800 MVA and 9,457 Ckm of EHV lines till 2013-14.

Finances have been tied up with Rural Electrification Corporation for Rs6,000 crore and Power Finance Corporation for Rs4,000 crore. The cost of borrowing from them is high at around 11% plus. So the company also tied up with alternative sources like Japan International Corporation Agency and International Finance Corporation where borrowing cost is quite low. Domestic infrastructure lenders like IDFC have also shown interest in lending to the expansion plans.

The company is lining up IPO in the next fiscal where it will dilute 10% equity. Most of the preparatory work is over. Once the issue related to asset distribution of erstwhile MSEB between Mahagenco (generation firm), Mahatransco and Mahavitaran (distribution firm) is cleared by the government, It will come up with an IPO.