Power Grid raises borrowing limit to ₹35,000 crore for FY27
Power Grid Corporation of India approved a ₹35,000 crore borrowing limit for FY27 and proposed an identical limit for FY28 to finance transmission projects through domestic bond issuances. The board also appointed experienced firms R. M. Bansal & Co. and Chandra Wadhwa & Co. as joint cost auditors for FY27, subject to shareholder approval.
*this image is generated using AI for illustrative purposes only.
Power Grid Corporation of India board approved raising its borrowing limit to ₹35,000 crore for FY27 and proposed an identical limit for FY28 on July 22, 2026, to support capital-intensive transmission projects through domestic bond issuances. The approvals, which require shareholder consent at the upcoming Annual General Meeting, enable the company to raise funds via secured or unsecured, non-convertible, cumulative or non-cumulative, redeemable, taxable or tax-free bonds under private placement. The Board also appointed M/s. R. M. Bansal & Co. and M/s. Chandra Wadhwa & Co. as joint cost auditors for FY27.
The enhancement increases the borrowing cap from ₹30,000 crore to ₹35,000 crore for the current fiscal year, reflecting the company’s ongoing investment cycle in power infrastructure. For FY28, the Board proposed maintaining the borrowing limit at ₹35,000 crore. These proposals were made in compliance with Regulation 30 read with Schedule III of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. The Board meeting commenced at 7:30 p.m. IST and concluded at 9:30 p.m. IST.
Key Approvals
| Proposal | Financial Year | Amount |
|---|---|---|
| Enhancement of borrowing limit | FY27 | ₹35,000 crore |
| Proposal for borrowing funds | FY28 | ₹35,000 crore |
Cost Auditor Appointments
The Board appointed two firms with extensive experience in the power sector as joint cost auditors for FY27. The appointment was disclosed pursuant to Regulation 30 read with Schedule II of SEBI LODR and SEBI Master Circular No. HO/49/14/14(7)2025-CFD-POD2/11/3762/2026 dated January 30, 2026.
| Firm | Base Location | Establishment Year |
|---|---|---|
| M/s. R. M. Bansal & Co. | Kanpur | 1990 |
| M/s. Chandra Wadhwa & Co. | Delhi | 2001 |
M/s. R. M. Bansal & Co., established in 1990, has conducted cost audits for Power Grid from FY2014-15 to FY2019-20 and for FY2024-25 and FY2025-26. The firm, which comprises nine partners and four qualified assistants, has served major PSUs including NTPC Ltd., NHPC Ltd., and Coal India Ltd. M/s. Chandra Wadhwa & Co., established in 2001, has audited Power Grid for FY2018-19, FY2019-20, FY2024-25, and FY2025-26. It has ten partners and five qualified assistants, with clients including GAIL India Ltd., SJVN Ltd., and ONGC.
Historical Stock Returns for Power Grid Corporation of India
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.86% | -1.34% | -1.19% | +8.87% | -3.10% | +120.44% |
How might the increased borrowing limit impact Power Grid's debt-to-equity ratio and credit rating outlook for FY27 and FY28?
Which specific transmission projects are prioritized for funding under the new ₹35,000 crore borrowing cap, and what is their expected timeline for completion?
Will Power Grid prioritize tax-free bonds over taxable instruments given current market yields, and how will this choice affect its overall cost of capital?
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