8AUGUST 2024ADANI GROUP TO VENTURE INTO VIETNAM FOR LUCRATIVE INVESTMENTSPGCIL TO LAYDOWN UNDERSEA HVDC LINES FROM GUJARAT TO MIDDLE-EASTIndia's Adani Group is exploring opportunities to invest in Vietnam's aviation and logistics sectors, according to a statement from the Vietnamese government on Wednesday. This announcement follows a meeting between Vietnamese Prime Minister Pham Minh Chinh and Gautam Adani, the head of the Adani Group, during Chinh's official visit to India.Adani Group is considering investments in two significant airport projects in Vietnam:Long Thanh Airport: Located in the southern region of Vietnam, Long Thanh Airport is a major infrastructure project aimed at relieving the overload of Tan Son Nhat Airport in Ho Chi Minh City.Chu Lai Airport: Situated in the central region of Vietnam, Chu Lai Airport is strategically positioned to support economic development in the area.The statement did not specify the exact amount of investment or the timeline for these projects. However, it highlighted Adani Group's intent to strengthen cooperation with Vietnamese partners in the aviation and logistics sectors.This initiative builds upon Adani Group's broader plans in Vietnam, as Karan Adani, the elder son of Gautam Adani, previously announced intentions to invest up to $3 billion in seaport and renewable energy projects last year. Looking ahead, these investments could potentially expand to $10 billion over the longer term, reflecting the group's strategic interest in enhancing its presence in Vietnam's infrastructure and energy sectors. State-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. TOPSTORIES
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