Mumbai, July 1 -- Power Grid of India, the central transmission utility, announced that its board has approved raising the overall borrowing limit to Rs two point two trillion (tn). The increase in headroom is intended to meet financing requirements for the company's transmission network expansion and ongoing capital expenditure. The decision was taken at a board meeting held to review financing strategy and ensure resources are aligned with the company's investment pipeline. The board also reviewed capital allocation priorities for the medium term.
The revised ceiling replaces the previous authorised limit and provides flexibility to tap domestic and international markets through issuance of bonds, commercial borrowings and loans from financial institutions. The board authorised management to finalise the mix and tenor of instruments in consultation with lenders and advisers. The increase will permit timely funding of projects while maintaining compliance with regulatory norms and internal risk parameters. Rating implications and debt servicing plans were examined by the finance committee.
The board noted that the additional headroom will be used to refinance existing obligations, support strategic investments and meet short term liquidity requirements as necessary. Management was directed to pursue cost effective funding and to maintain transparency with stakeholders on deployment of funds. The company will continue to align its borrowing programme with projected cash flows and regulatory tariff frameworks. The management will report progress to the board periodically.
The move reinforces the company's capacity to execute a large pipeline of transmission projects and to respond to evolving demand for grid infrastructure. While the board has expanded the borrowing limit, any specific issuances will be subject to market conditions and requisite approvals from statutory bodies and financiers. The increased limit provides headroom for multi year planning and supports sustained investment in strengthening national transmission networks. This measure aims to support reliable power supply across regions.
Published by HT Digital Content Services with permission from Construction World.