Power Grid Corporation of India Limited (POWERGRID) has taken a significant step towards enhancing cross-border power transmission infrastructure by entering into Joint Venture and Shareholders Agreements (JV&SHA) with Nepal Electricity Authority (NEA) on October 29, 2025. This strategic partnership aims to develop high-capacity power transmission links between India and Nepal, marking a crucial milestone in regional energy cooperation.

Key Highlights of the Partnership

• Joint Venture Companies: Two Joint Venture Companies (JVCs) will be formed, one in India and one in Nepal.
• Transmission Projects:
  1. 400kV Double Circuit Inaruwa (Nepal) - New Purnea (India) Transmission Link
  2. 400kV Double Circuit Lamki (Dododhara) (Nepal) - Bareilly (India) Transmission Link
• Equity Structure:
  • Indian JVC: POWERGRID (51%), NEA (49%)
  • Nepalese JVC: POWERGRID (49%), NEA (51%)

Strategic Implications

This partnership represents a significant step towards strengthening energy ties between India and Nepal. The high-capacity cross-border transmission infrastructure will facilitate efficient power exchange between the two countries, potentially leading to improved energy security and economic benefits for both nations.

Financial Context

To provide context for POWERGRID's financial capacity to undertake this venture, here's a snapshot of the company's key financial metrics based on the latest available data:

POWERGRID's strong financial position, evidenced by its growing asset base and equity, suggests that the company is well-positioned to undertake this significant cross-border infrastructure project. The substantial increase in investments (21.12% year-over-year) also indicates the company's strategic focus on expanding its portfolio and capabilities.

Conclusion

The joint venture between POWERGRID and Nepal Electricity Authority represents a landmark development in South Asian energy cooperation. As this project progresses, it will be crucial to monitor its impact on regional power dynamics, economic growth, and energy security in both India and Nepal.

Power Grid Corporation of India Limited (POWERGRID), a leading electric power transmission company, has announced a significant move in its fundraising efforts. The company's board has approved raising up to Rs 3,800 crore through the issuance of bonds, demonstrating its commitment to securing additional capital for operations and potential expansion activities.

Bond Issue Details

The 'Committee of Directors for Bonds' met on November 17, 2025, and approved the issuance of bonds under the following terms:

Key Features of the Bond Issue

• Security: The bonds will be unsecured, indicating they are not backed by any specific assets of the company.
• Redemption: The bonds are structured to be redeemed at par in 10 equal annual installments.
• Coupon Rate: The interest rate will be determined after the bidding process on the Electronic Book Provider (EBP) Platform.
• Special Rights: No special rights or privileges are attached to these bonds.

Implications for the Company

This bond issue represents a strategic financial move for POWERGRID. By raising substantial funds through this method, the company aims to strengthen its capital base, which could be utilized for various purposes such as:

1. Funding ongoing projects
2. Expanding transmission infrastructure
3. Modernizing existing assets
4. Meeting working capital requirements

Market Impact

The announcement of this substantial bond issue may have implications for POWERGRID's stock performance and investor sentiment. It demonstrates the company's proactive approach to capital management and its ability to access debt markets for funding needs.

As the power sector continues to evolve, particularly with the increasing focus on renewable energy integration, POWERGRID's move to bolster its financial resources could be seen as a strategic step to maintain its competitive edge and support future growth initiatives.