Power Finance Corporation (PFC) has approved a massive ₹1.6 trillion (₹1.6 lakh crore) borrowing plan for FY 2026–27, aimed at supporting funding requirements in the power and infrastructure sectors.
The approved plan allows the company to raise funds through a mix of domestic and international instruments, including bonds, term loans, and commercial papers, reflecting a diversified funding strategy.
A significant portion around ₹1.1 trillion will be mobilised through domestic long- and medium-term borrowings, including taxable and tax-free bonds, infrastructure bonds, and green or ESG-linked instruments.
In addition, the company has planned foreign currency borrowings of about ₹20,000 crore, which may include loans from global lenders, multilateral agencies, and overseas bond issuances.
The plan also includes short-term borrowings of approximately ₹30,000 crore, along with funding through commercial paper and other instruments to manage liquidity requirements efficiently.
The large-scale fundraising programme underlines PFC’s continued role as a key financier for India’s power sector, particularly at a time when investments are rising in renewable energy, transmission networks, and infrastructure development.
The move is also aligned with the growing capital needs of the sector, as India accelerates its energy transition and expansion of power infrastructure, requiring sustained financial support from institutions like PFC.
Overall, the ₹1.6 trillion borrowing approval reflects strong credit demand visibility and an aggressive funding strategy, positioning PFC to play a central role in financing India’s next phase of energy and infrastructure growth.
