New Delhi/Gurugram: Power Grid Corporation of India Limited (POWERGRID) has approved key financial decisions to strengthen its funding capacity for future expansion of India’s power transmission infrastructure. In its Board Meeting held on July 22, 2026, the company approved an increase in its borrowing limit for FY 2026-27 and proposed a similar borrowing limit for FY 2027-28.
The Board also approved the appointment of M/s R.M. Bansal & Co. and M/s Chandra Wadhwa & Co. as Joint Cost Auditors of the company.
The decisions were disclosed through an official filing submitted by POWERGRID to the stock exchanges.
POWERGRID Increases FY 2026-27 Borrowing Limit by ₹5,000 Crore
The POWERGRID Board approved an increase in the company’s borrowing limit for the financial year 2026-27 from ₹30,000 crore to ₹35,000 crore.
The additional borrowing capacity will provide greater financial flexibility as the company continues to invest in transmission projects and strengthen the national power grid.
The funds may be raised through multiple sources, including:
- Domestic bonds
- Secured and unsecured bonds
- Non-convertible instruments
- Cumulative and non-cumulative bonds
- Redeemable instruments
- Taxable and tax-free bonds through private placement
₹35,000 Crore Borrowing Proposal Approved for FY 2027-28
Along with the enhanced borrowing limit for FY 2026-27, the Board also approved a proposal to raise funds of up to ₹35,000 crore during FY 2027-28.
The proposed borrowing will be through similar financial instruments, including domestic bond issuances and other approved sources.
Both borrowing proposals will require approval from shareholders during the company’s upcoming Annual General Meeting (AGM).
Borrowing Plan Supports POWERGRID’s Expansion and Capital Expenditure Goals
POWERGRID’s decision comes as the company prepares for significant capital expenditure in the coming financial years.
For FY 2026-27, the company has guided:
- Capital expenditure (Capex): ₹37,000 crore
- Capitalisation target: ₹30,000 crore
For FY 2027-28, POWERGRID has projected:
- Capital expenditure (Capex): ₹45,000 crore
- Capitalisation target: ₹35,000 crore
The company’s enhanced borrowing ceiling of ₹35,000 crore for FY 2026-27 remains below its projected capex requirement of ₹37,000 crore, indicating that funding may also involve internal accruals and other financial resources.
POWERGRID Maintains Strong Investment Focus in Power Transmission Sector
POWERGRID has been expanding its transmission network to support India’s growing electricity demand and renewable energy integration.
The company had earlier reported capital expenditure of around ₹39,900 crore in FY 2025-26, exceeding its earlier guidance of ₹35,000 crore.
POWERGRID Chairman and Managing Director Burra Vamsi Rama Mohan has stated that the FY 2026-27 capex estimate is an initial projection and may be revised depending on project requirements and developments during the year.
POWERGRID Appoints Joint Cost Auditors
During the Board Meeting, POWERGRID also approved the appointment of:
- M/s R.M. Bansal & Co.
- M/s Chandra Wadhwa & Co.
as Joint Cost Auditors for the company.
The appointment is part of POWERGRID’s compliance and financial governance framework.
Shareholder Approval Required for Borrowing Proposals
The company clarified that both borrowing-related decisions approved by the Board are subject to approval by shareholders at the forthcoming Annual General Meeting.
Once approved, the enhanced borrowing capacity will help POWERGRID maintain financial flexibility while executing large-scale transmission projects across the country.
About Power Grid Corporation of India Limited (POWERGRID)
Power Grid Corporation of India Limited (POWERGRID) is a Maharatna Central Public Sector Enterprise under the Ministry of Power, Government of India. The company is India’s leading power transmission utility, responsible for developing and operating a large-scale transmission network across the country. POWERGRID also undertakes projects in smart grid technology, telecommunications, and renewable energy integration to strengthen India’s power infrastructure.
Read also: POWERGRID Wins Major ISTS Project for Krishnagiri Renewable Energy Zone Phase-I Integration
