Andhra Pradesh-Transco to enter capital markets soon

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Transmission Corporation of Andhra Pradesh Limited (AP-Transco) is gearing up for an initial public offering (IPO) as part of its major financial restructuring plan. This is to tap capital markets in line with the mandate of the Ministry of Power (MoP) that at least one power company in every state should conduct an IPO under the prescribed eligibility conditions set out in the draft framework for Fiscal Responsibility and Budget Management (FRBM) issued by the MoP.

AP-Transco has hereby been instructed to prepare and formulate a time bound plan to facilitate the proposed IPO based on the decision taken by Chief Minister N. Chandrababu Naidu at the High Level Review Meeting on Power Sector held in August 2026, as per the Transco Office Order (TOO) issued by the Special Chief Secretary to the Government of Andhra Pradesh and Chief Secretary to the Government of Andhra Pradesh in October Vijaanco (KAP-Energy). 21.

He said the financial restructuring plan includes both short-term and long-term strategies designed to strengthen AP-Transco’s financial position and ensure its financial sustainability.

Short term plan

The short-term plan focuses on rationalizing and optimizing AP-Transco’s existing loan portfolio to reduce interest costs on outstanding borrowings to a target range of 8.00% to 8.60%, while the long-term plan focuses on restructuring borrowings to strengthen the utility’s creditworthiness with the ultimate goal of achieving a AAA+ rating.///

It was mentioned in the TOO that the MoD consistently emphasizes the need for expedited action aimed at completing all preparatory activities and necessary formalities for the initiation of IPO processes of energy companies in order to facilitate timely implementation.

AP-Transco has identified key result areas (KRAs) with actionable items for timely completion of the plan while proposing the IPO.

The KRAs are regularization of land recorded in AP – Transco books, improvement of financial parameters and ratios to increase credit rating, exploration of project financing from various sources, use of dark fiber leasing to increase non-tariff revenue and implementation of ISO 55001:2024 asset management certificate.

Published – 22 Oct 2026 09:33 IST