PFC approves Rs 1.6 lakh crore borrowing plan, closes GIPCL
Author: PPD Team Date: March 18, 2026
Power Finance Corporation Limited (PFC) has approved a borrowing programme of up to Rs 1,60,000 crore for FY2026-27 at its board meeting held on March 17, 2026. The board also approved closure of an 18-year-old project subsidiary that did not progress to implementation.
Borrowing plan and dividend
The borrowing ceiling includes Rs 1,10,000 crore from domestic long- and medium-term sources such as bonds, debentures, capital gain bonds under Section 54EC, and loans from banks and financial institutions. Foreign currency borrowings, including syndicated loans, multilateral funding, and green bonds, are capped at Rs 20,000 crore (around USD 2.21 billion at an exchange rate of Rs 90.67 per dollar). Short-term instruments such as commercial paper and inter-corporate deposits (ICDs) account for Rs 30,000 crore. Funds raised and prepaid during the year are excluded from the limit.
The Chairman and Managing Director (CMD) has been authorised to reallocate amounts across categories within the approved ceiling.
The board also declared a fourth interim dividend of Rs 3.25 per share (32.5% of face value) for FY2025-26. The record date is March 23, 2026, and payment is scheduled by April 16, 2026 through electronic modes, in line with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements (LODR) Regulations, 2015.
GIPCL strike-off
In a separate disclosure, PFC stated that Ghogarpalli Integrated Power Company Limited (GIPCL), a wholly owned subsidiary, has been struck off by the Registrar of Companies with effect from March 16, 2026.
GIPCL was incorporated in May 2008 as a Special Purpose Vehicle (SPV) for a proposed 4,000 MW Ultra Mega Power Project (UMPP) in Odisha. The project was later shelved, and the Ministry of Power approved closure of the company in November 2025. The Ministry of Corporate Affairs (MCA) has now confirmed the strike-off.
PFC classified GIPCL as a non-material subsidiary. Its closure formalises the discontinuation of a project that did not reach execution, reflecting broader trends in stalled UMPP developments.
PFC’s trading window, which was closed ahead of the board meeting, will reopen on March 20, 2026.