Power Grid board approves increasing borrowing limit to Rs 35,000 cr each in FY27 & FY28

New Delhi: The board of directors of Power Grid Corporation of India Limited (PGCIL) approved an increase in the company's borrowing limit for the current financial year and a separate borrowing approval for the following year at its meeting on July 22, according to a disclosure filed with the stock exchanges.

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FY27 limit raised by Rs 5,000 crore

The first proposal covers the "enhancement of borrowing limit from Rs 30,000 crore to Rs 35,000 crore during the financial year 2026-27," an increase of Rs 5,000 crore over the existing limit.

The filing says the funds may be raised "through various sources including Domestic Bonds," described in the document as "(Secured/ unsecured, non-convertible, cumulative/ non-cumulative, redeemable, taxable/ tax-free under private placement)."

The second proposal is for "borrowing of funds of up to Rs 35,000 Crore during the financial year 2027-28", using the same set of instruments.

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Borrowing headroom against FY27 capex guidance

Power Grid has separately guided for capital expenditure of Rs 37,000 crore and capitalisation of Rs 30,000 crore in FY 2026-27, a figure the company reiterated after its Q4 FY26 results. For FY 2027-28, it has maintained a guidance of Rs 45,000 crore capex and Rs 35,000 crore capitalisation. PGCIL's Chairman and Managing Director (CMD) Burra Vamsi Rama Mohan has said the FY27 capex figure is an initial estimate that would be revised as the year progressed. FY 2025-26 capex came in at Rs 39,900 crore against guidance of Rs 35,000 crore.

The enhanced borrowing ceiling of Rs 35,000 crore sits below the Rs 37,000-crore capex target for FY27, and the Rs 45,000-crore capex target for FY28. The company has not stated the debt-to-internal-accrual split it intends to apply to either year.

The regulatory filing said that both items "are subject to approval of shareholders in the ensuing Annual General Meeting."

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