New Delhi: State-owned power transmission company Power Grid Corporation of India Limited (POWERGRID) has approved a major financial and infrastructure expansion plan, including an increase in borrowing limits, overseas fundraising, and a key transmission upgrade project in Tamil Nadu.
The decisions were taken at the company’s Board meeting held on June 26, 2026, aimed at strengthening India’s power transmission network and supporting future capacity expansion.
Borrowing Limit Raised to ₹2.2 Lakh Crore
The board approved increasing POWERGRID’s overall borrowing ceiling from ₹1.80 lakh crore to ₹2.20 lakh crore, subject to shareholder approval at the upcoming Annual General Meeting.
This ₹40,000 crore increase in borrowing headroom is expected to support the company’s growing pipeline of transmission infrastructure projects across India.
$500 Million ECB Approved via Bank of Baroda
In a key financing decision, the company also approved raising up to $500 million through External Commercial Borrowings (ECB) from Bank of Baroda.
The overseas funding initiative is expected to:
- Strengthen financial flexibility
- Provide access to cost-competitive global capital
- Support ongoing and future expansion projects
This move aligns with POWERGRID’s strategy to diversify funding sources for large-scale infrastructure investments.
₹772.65 Crore Transmission Project Approved in Tamil Nadu
The board also approved investment for upgrading the Udumalpet–Madurai transmission corridor in Tamil Nadu.
Key details of the project include:
- Conversion of existing 400 kV single-circuit line into quad double-circuit line
- Total estimated cost: ₹772.65 crore
- Expected completion timeline: 30 months
- Target commissioning: August 11, 2028
The upgrade is aimed at improving grid reliability and enhancing power flow capacity in southern India.
Strengthening India’s Power Transmission Network
The expansion decisions reflect POWERGRID’s focus on:
- Expanding national transmission infrastructure
- Supporting renewable energy integration
- Meeting rising electricity demand across states
- Improving grid stability and efficiency
The company continues to play a central role in strengthening India’s interstate power transmission backbone.
Bond Issuance Plan for FY26–27 Approved
Separately, the Committee of Directors for Bonds approved the General Information Document (GID) for issuing debentures during FY 2026–27.
This will allow POWERGRID to raise funds through:
- Debt securities
- Bonds
- Private placement in one or more tranches
The move provides additional financial flexibility for infrastructure financing during the fiscal year.
About POWERGRID
POWERGRID Corporation of India Limited is a Maharatna public sector enterprise under the Ministry of Power, Government of India. It is responsible for bulk transmission of electricity across India and operates one of the largest power transmission networks in the world, playing a critical role in ensuring reliable and efficient power supply across the country.
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