AUGUST 20249PGCIL TO LAYDOWN UNDERSEA HVDC LINES FROM GUJARAT TO MIDDLE-EASTRELIANCE SECURES APPROVAL FROM USA TO RESUME OIL TRADE WITH VENEZUELAState-run Power Grid Corporation of India (PGCIL) is planning an ambitious undersea interconnection project worth up to Rs 40,000 crore with countries in the Middle East. This project aims to establish a high voltage direct current (HVDC) link from Gujarat's Bhuj to countries like Oman, Saudi Arabia, and the UAE, according to the company's Chairman and Managing Director R. K. Tyagi.The initiative, which involves laying a high-capacity cable on the seabed to connect with similar 'pulling stations' on the shores of the Middle Eastern countries, is expected to have a capacity of up to 2,500 MW and take up to six years to complete. This project aligns with Power Grid's strategy to continuously commission new projects to maintain and boost revenue growth, particularly as earnings from older transmission projects decline over time.In terms of financial performance, Power Grid experienced a relatively flat revenue growth in the June quarter but expects a modest topline increase of 4-5 percent in FY25. To support this growth, the company plans to invest Rs 18,000 crore in the current fiscal year. The slower revenue growth in the June quarter was attributed to the 'capitalization' of only Rs 2,300 crore worth of projects. However, the company plans to significantly increase this figure to up to Rs 18,000 crore within the fiscal year, which is anticipated to enhance future growth rates.This strategic investment in undersea interconnection with the Middle East not only underscores Power Grid's commitment to expanding its infrastructure but also highlights its role in enhancing energy connectivity and cooperation beyond India's immediate neighborhood. Reliance Industries has secured US approval to resume importing oil from Venezuela despite White House sanctions on the country, according to people familiar with the development. India's largest privately owned refiner plans to start purchasing Venezuelan crude soon, with Reliance having accounted for around 90 percent of India's crude imports from Venezuela after sanctions were lifted last year, based on data from Kpler, a data intelligence firm.The US Treasury and Reliance Industries have not publicly commented on this development. Washington temporarily removed restrictions on Venezuela's gold and oil sectors last year to support a deal for free and fair elections signed by President Nicolas Maduro and the opposition. However, sanctions were reinstated in April after Venezuela failed to honor the agreement. Since then, oil companies have been applying for permits from the US Treasury Department to continue their operations in Venezuela.Venezuela's crude exports increased to 654,000 barrels a day in June, the highest since April 2020, following a specific license granted by the US for continued drilling despite the sanctions. Besides Reliance, India's state-owned Oil and Natural Gas Corp.'s overseas investment arm, ONGC Videsh Ltd., has also applied for waivers to import crude from Venezuela. TOPSTORIES
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