Synopsis: Power Finance Corporation (PFC) has approved a proposal to enhance its borrowing limit to Rs. 9 lakh crore from domestic markets and USD 25 billion from international markets, subject to shareholder approval. The move is aimed at strengthening the company’s lending capacity to support India’s expanding power and infrastructure sectors while ensuring adequate funding for future growth.
Shares of Power Finance Corporation Limited (PFC) are likely to remain in focus after the company’s Board approved a proposal to seek shareholders’ approval for increasing its borrowing limits under Sections 180(1)(a) and 180(1)(c) of the Companies Act, 2013. The proposal will enable the company to raise additional funds from both domestic and international markets to meet its growing financing requirements.
Power Finance Corporation Limited has a total market capitalization of approximately Rs. 1,34,776 crore. The company’s shares were trading at Rs. 408.90 apiece on the stock exchange, down by 0.28 percent. The stock has gained 0.84 percent over the last five trading sessions and declined 6.45 percent over the last month. It touched a 52-week high of Rs. 486.50 and a 52-week low of Rs. 329.90.
According to the company’s exchange filing, the Board has approved seeking shareholders’ consent to increase the borrowing limit to Rs. 9,00,000 crore through Indian rupee borrowings and USD 25 billion (or its equivalent in other foreign currencies) through overseas borrowings. The approval will allow the company to raise funds with or without security as required for its business operations and for financing projects on behalf of the Government of India and the Ministry of Power.
The Board has also approved seeking shareholders’ approval to create mortgages and charges on the company’s movable and immovable assets to secure these borrowings. This will provide PFC with greater financial flexibility to access capital from domestic and global debt markets while supporting its expanding loan portfolio.
The proposal is strategically significant because PFC is one of India’s largest infrastructure financiers, with lending focused primarily on the power sector. As electricity demand continues to rise and the government accelerates investments in transmission networks, renewable energy, power distribution reforms and grid modernisation, the financing requirements of the sector are expected to increase substantially. A higher borrowing limit enables the company to mobilise larger resources and maintain its leadership position in infrastructure financing.
The enhanced borrowing capacity is also expected to improve PFC’s ability to diversify its funding sources by accessing both domestic and overseas debt markets. International borrowings can help optimise funding costs depending on market conditions, while a larger borrowing headroom ensures the company is well positioned to support large-scale infrastructure projects without facing funding constraints.
India’s power sector is witnessing unprecedented capital expenditure driven by renewable energy expansion, transmission infrastructure development, battery energy storage systems, green hydrogen projects and electrification initiatives. Financial institutions such as PFC play a critical role in funding these projects, making access to long-term capital essential for sustaining sectoral growth.
For investors, the proposal does not represent an immediate increase in borrowings but provides the company with additional financial flexibility to support future business growth. As loan demand from the power and infrastructure sectors continues to expand, the higher borrowing limit could enable PFC to grow its loan book, maintain healthy disbursements and strengthen long-term earnings, subject to prudent capital allocation and shareholder approval.
About the company
Power Finance Corporation Limited is a Systemically Important Non-Deposit Taking NBFC registered with the Reserve Bank of India as an Infrastructure Finance Company (IFC). The company primarily provides financial assistance to India’s power sector, including generation, transmission and distribution projects, while also financing renewable energy, infrastructure and other strategic sectors. As a Government of India undertaking, PFC plays a key role in supporting the country’s power infrastructure and energy transition.
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