State-owned Power Grid Corporation of India Ltd (PGCIL) will seek shareholders' approval to raise up to Rs 6,000 crore through private placement of bonds or debentures at its annual general meeting later this month.

A special resolution in this regard has been listed on the agenda of the annual general meeting to be held on September 24, 2021.

It proposes to raise up to Rs 6,000 crore from domestic market through issue of secured / unsecured, non-convertible, non-cumulative/cumulative, redeemable, taxable / tax-free debentures/bonds under private placement during 2022-23 in up to twenty tranches/offers.

The board of directors, at its 393rd meeting held on June 17, 2021, had approved raising up to Rs 6,000 crore through bonds, depending upon the requirement of funds during 2022-23 for financing capital expenditure and providing inter corporate loans to wholly-owned subsidiaries, among others.

The company explained that an amount of Rs 8,000 crore to Rs 10,000 crore is being considered as expected capital expenditure (capex) during 2022-23.

In order to have a debt equity mix of 70:30, an amount of Rs 5,600 crore - Rs 7,000 crore is estimated to be mobilized as debt and balance from internal resources.

PGCIL's domestic bonds are rated at highest credit rating (AAA) by various rating agencies like CRISIL, ICRA and CARE.

The proposed borrowing for 2022-23 will be within the overall borrowing limit of Rs 1,80,000 crore, it stated.

In a separate filing, the company said a project comprising Fatehgarh-11 - Bhadla-11 765kV DIC transmission line, two 765kV bays each at Fatehgarh-11 and Bhadla-11 SIS and 240 MVAR switchable line reactor on each circuit has been successfully commissioned on August 30, 2021.

The project was put under commercial operation on September 1 by its wholly-owned subsidiary Power Grid Fatehgarh Transmission.