Chandigarh, July 23 -- Months after projecting itself as a financially stable utility before the Punjab State Electricity Regulatory Commission (PSERC), the Punjab State Power Corporation Limited (PSPCL) has decided to raise up to Rs.10,000 crore from the debt market, highlighting persistent liquidity stress despite reporting improved financial performance.

The proposed borrowing comes despite PSPCL maintaining in its latest Annual Revenue Requirement (ARR) filings that its "finances had improved and that it had returned to profitability". The utility relied on this assessment while seeking approval for its revenue requirement and tariff framework before the regulator.

Yet delayed government subsidy reimbursements and mounting power bil...