PSPCL to raise 10000 crores from debt market on its own
PATIALA: The cash strapped Punjab State power Corporation Ltd. (PSPCL ) to raise Rs 10,000 crores from the debt market on its own without any state government guarantee to meet capital expenditure requirements.
PSPCL has invited online bids on from SEBI-registered Category-I Merchant Bankers for the selection of a “Transaction Advisor-cum-Merchant Banker/Arranger to mobilise Rs.10,000 crores through the proposed issuance of Non-Convertible Debentures (NCDs) and bonds” with tender opening date of July 10.
There is an outstanding dues of Rs.10200 crores from the government including subsidy and government departments defaulting amount. It may be mentioned that PSPCL revised its annual revenue requirement before regulatory commission as it is in sound financial position and has a profit of Rs.7800 crores. Even the last financial year’s (2025-26 ) audit report shows a profit of Rs. 2204 crores .
PSPCL has categorically clarified to prospective bidders seeking clarification on government backing that no Punjab government guarantee will be available for the proposed Rs.10,000 crore bond/NCD issue.
Senior officials claim that annual payment of the interest on such a huge borrowing will severely dent the PSPCL’S finances and may even put at risk the viability of the company and ultimately lead to sell out PSPCL to the private sector.. To raise Rs. 10000 crores from debt market , a substantial portion of its fixed assets may be given to investor as guarantee
PSPCL in a press release on April 30,2026 informed that Acuite has upgraded its long-term rating to ‘ACUITE A-’ (read as ACUITE A minus) from ‘ACUITE BBB+. The outlook is ‘Stable’. The total outstanding bank loans are Rs.11272 crores.15 crores. The PSPCL operates its own power plants and gets power from BBMB . In FY25, the corporation generated 13346.97 MU which includes 9419.48 MU of thermal power and 3927.49 MU of Hydel power. PSPCL has a long term PPA with central agencies.
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