The board of the Power Finance Corporation has approved a plan to borrow up to Rs 1.6 trillion from domestic and international markets for the financial year 2026-27. The company can raise up to Rs 1.1 trillion through domestic long- and medium-term borrowings, including bonds, debentures, and other debt instruments. These include taxable and tax-free bonds, as well as infrastructure, inflation-linked, market-linked, green, social, and ESG bonds. The plan also allows funding through various structures, such as fixed or floating rate and non-convertible instruments.
The board also approved up to Rs 200 billion in foreign-currency long- and medium-term borrowings. These may include term loans, syndicated and subordinated loans, FCNR(B) loans, funding from multilateral agencies, as well as secured or unsecured bonds, including green and subordinated bonds, and other foreign-currency instruments. Additionally, Power Finance Corporation can raise Rs 200 billion through short-term domestic or foreign-currency borrowings, along with Rs 100 billion via commercial paper, taking the total approved borrowing limit to Rs 1.6 trillion.
Earlier this month, PFC Consulting Limited, a wholly owned subsidiary of Power Finance Corporation, floated a tender for the development of an interstate transmission system (ISTS). The project will enable the evacuation of 5,500 MW of renewable energy from the Jam Khambhaliya Renewable Energy Zone (Phase II) and 1,000 MW from Jamnagar (Phase I).
