Power Grid board approves plan to raise borrowing limit to Rs 15000 crore for FY'25

Power Grid Board Approves Increased Borrowing Limit to Rs 15,000 Crore for FY 2024-25

New Delhi: The State-owned Power Grid Corporation of India (PGCIL) board on Wednesday approved a proposal to increase the borrowing limit to Rs 15,000 crore from the previous Rs 12,000 crore for the fiscal year 2024-25 through various financial instruments.

In addition, the board has set the borrowing limit at Rs 16,000 crore for the fiscal year 2025-26. During the meeting held on July 10, 2024, the Board of Directors of Power Grid sanctioned the borrowing of up to Rs 16,000 crore for FY 2025-26 from multiple sources, including domestic bonds (secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free under private placement), according to a BSE filing.

The board also increased the current borrowing limits from Rs 12,000 crore to Rs 15,000 crore for FY 2024-25. This increase will be facilitated through the issuance of secured/unsecured, non-convertible, non-cumulative, redeemable, taxable/tax-free bonds under private placement from domestic and other sources.

These approvals by the Board of Directors are subject to the ratification of shareholders at the upcoming annual general meeting, the filing stated.

This strategic move by Power Grid aims to bolster its financial flexibility and support its ongoing and future infrastructure projects. By expanding its borrowing capacity, PGCIL can ensure adequate funding for its ambitious expansion plans, thereby enhancing its ability to meet the growing demands of the power sector.

The approval of higher borrowing limits reflects Power Grid's commitment to maintaining a robust financial position while continuing to invest in critical infrastructure. This step is expected to enable the company to capitalize on emerging opportunities and drive sustained growth in the power transmission sector.