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After a positive start to the day, Indian Indices are currently under pressure during the post-noon trading session. Sectoral indices are trading on a mixed note with stocks from the consumer durables, oil & gas sectors trading in green while capital goods & IT stocks are bearing the maximum brunt.
The BSE Sensex is trading lower by 80 points (down 0.3%) while the NSE Nifty is trading lower by 17 points (down 0.2%). The BSE Mid Cap index and BSE Small Cap index both are trading flat. Gold prices, per 10 grams, are trading at Rs 31,018 levels. Silver price, per kilogram is trading at Rs 43,923 levels. Crude oil is trading at Rs 3,183 per barrel. The rupee is trading at 67.04 to the US$.
As per a leading financial daily, Indian Oil Corporation (IOC) will invest Rs 6.5 billion in increasing its storage and bottling capacity in Tripura over the next three years. In order to prevent fuel crisis in the state, the company will set up one Petroleum, Oil and Lubricant (POL) depot and a new bottling plant in Agartala.
For this purpose, IOC's North East division will also start moving a convoy of 20 tankers to the North Eastern state for the first time via Bangladesh.
Reportedly, the POL depot will incur an investment of around Rs 5 billion with a capacity of around 6,000 kilo litre. Further Rs 1.4 billion is the estimated expenditure for setting up the bottling plant with a capacity of 30,000 million tonnes per annum.
Meanwhile, in order to capitalise part of the reserves, the company's board will meet on 29th August to consider issue of bonus shares to its shareholders.
Considering oil & gas sector, government is looking to merge 13 state oil companies to create a giant corporation. The idea is that the creation of such a giant firm will catapult India into a much bigger league. Whether this highly ambitious plan will be successfully executed is a big question.
IOC was trading was trading up by 0.7% at the time of writing.
According to an article in a leading financial daily, Power Grid Corporation of India (Power Grid) is planning to raise up to Rs 140 billion through issuance of bonds from domestic and external sources in 2017-18. The funds will be raised through issuance of bonds under private placement.
According to the proposal, the company will raise funds in up to eight tranches with or without greenshoe option. Each tranche shall be of up to Rs 20 billion of bonds, exclusive of the greenshoe part. A greenshoe option is an over-allotment option.
Earlier, the company had also raised a total of Rs 14.8 billion in its various projects to be commissioned. These investment proposals include the one for installing transmission equipment at an estimated cost of Rs 10.7 billion for the western region. Further, it will also look at setting up of transformers in northern region at an estimated cost of Rs 6.3 billion, the reports noted.
Despite various hassles, the company has a consistent track record (Subscription Required) in commissioning projects on time or even before the scheduled date. Significantly, more than 45% of power generated in India is transmitted through PGCIL. The government has also laid a target of installing capacities of 175 Giga Watts (GW) of renewables by 2022.
Power Grid Corporation was trading down by 0.2% at the time of writing.
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