Mumbai, Jul 6: Maharashtra State Electricity Transmission Corporation (Mahatransco), the state-owned power transmission company is aiming to come out with an initial public offer within the next two to three years to mop up funds for its ambitious investment plan for expansion and upgradation of power transmission infrastructure by 2012.
According to official sources, the company would be in a position to handle the demand of around 35,000 MW by 2012 and steps were being initiated to part finance the huge investment requirements. Besides IPO, Mahatransco would also seek loans from various agencies including the Power Finance Corporation, World Bank, Rural Electrification corporation and Japan. For this purpose, Mahatransco was engaged in making its accounting practices compliant with SEBI requirements and reforming its business processes along with implementation of ERP. The IPO would hit the market either in 2009-10 or 2010-11 .
The source said at the end of 2012, a total transmission system of 598 sub-stations, 53,541Ckt Km. Lines and transformation capacity of 1,04,418 MVA was envisaged that will be capable of handling a demand of 30,000 to 35,000 MW.
Mahatransco, which was created as a result of unbundling of the erstwhile Maharashtra State Electricity Board (MSEB) on June 5, 2005, transmitted 70,988 million units through its network in 2007-08. The total gross asset base of Mahatransco at the end of 2007-08 was Rs 9,879 crores. The Company has delivered a record performance across most of its operating indicators during 2007-08.
It has excelled in terms of regulatory standards of performance as well. This year the profit of Mahatransco was Rs 302 crores against Rs 169 crores last year. Capital expenditure was pegged at Rs 1,095 crores for upgradation of the transmission infrastructure.
Mahatransco has invited expressions of interest for selection of strategic EPC partners to implement its massive plan of network expansion and upgradation. It has embarked upon a plan to acquire and install state of the art equipment and SCADA systems over the next two years to improve safety, availability and reliability of its transmission system and also plans to establish a fiber optic communication network, which would have sufficient additional capacity to help Mahatransco augment its revenues substantially.