The Power Grid Corporation of India (POWERGRID) has announced plans to raise up to ₹50 billion (~$500 million) with its 84th bond issue for 2026-27.

The bonds will have a base issue size of ₹10 billion (~$100 million) and a greenshoe option of ₹40 billion (~$400 million).

POWERGRID plans to list the bonds on the Bombay Stock Exchange and the National Stock Exchange of India.

The bonds will have a 10-year tenure. The company will make annual redemption payments starting at the end of the fourth year.

The coupon (interest) rate, along with the schedule for interest and principal payments, will be determined after bidding on the Electronic Book Provider platform.

The move comes months after POWERGRID’s board approved a proposal to raise up to ₹50 billion (~$541.45 million) through an unsecured rupee term loan or line of credit from the Union Bank of India.

The board also approved the divestment of POWERGRID’s equity stake in Central Transmission Utility of India,  wholly owned subsidiary of the company. The proposed divestment involves transferring the stake to the Grid Controller of India.

In February, the Cabinet Committee on Economic Affairs raised POWERGRID’s permissible equity investment limit for in its subsidiaries to ₹75 billion (~$825.25 million) per subsidiary, up from ₹50 billion (~$550.17 million).

The change in the limit will enable POWERGRID to participate in bids for capital-intensive transmission projects, such as ultra-high-voltage alternating-current and high-voltage direct-current transmission networks. The move is also expected to broaden the company’s participation in tariff-based competitive bidding for transmission projects.

Last November, POWERGRID approved the launch of its 83rd bond issue under its 2025-26 program, authorizing the company to raise ₹38 billion (~$428.72 million). The bond issue has a base size of ₹10 billion (~$112.82 million) and a greenshoe option of ₹28 billion (~$315.90 million).

POWERGRID has set a target to meet 50% of its electricity consumption from clean sources by 2025 and achieve Net Zero emissions by 2047. The company is expanding solar installations, opting for green tariff mechanisms, and steadily transitioning its diesel fleet to electric.

In the financial year 2026, renewable energy accounted for 39.35% of POWERGRID’s electricity consumption and 35.74% of its overall energy consumption. The shares increased by 255% and 257%, respectively, from the previous year.