Powergrid Plans ₹5,000 Crore Loan and Sale of Subsidiary Stake

State-owned power transmission company Power Grid Corporation of India (POWERGRID) has approved plans to raise up to ₹5,000 crore through a bank loan and sell its stake in one of its subsidiaries as part of key strategic decisions taken by its board. The company said the funds will strengthen its financial resources while supporting future operational and expansion plans.

According to the company, the board approved raising up to ₹50 billion (₹5,000 crore) through an unsecured rupee term loan or line of credit from Union Bank of India. The additional funding will help the company meet its operational requirements and support ongoing and upcoming transmission projects across the power sector.

Along with the loan plan, POWERGRID also gave in-principle approval to sell its entire equity stake in Central Transmission Utility of India Limited (CTUIL). CTUIL is currently a wholly owned subsidiary of the company, and the proposed transfer of ownership will be made to Grid Controller of India Limited (GRID-INDIA). The move is expected to streamline responsibilities within the country’s electricity transmission and grid management system.

The board further approved an investment of about ₹2.33 billion to establish a centralized security operations center for substations. The project aims to improve cybersecurity and monitoring of power grid infrastructure. It is expected to be completed within about 24 months after receiving approval from the Central Electricity Regulatory Commission.

In addition, POWERGRID plans to expand its international presence. The company approved a strategic partnership with Africa50 and the Uganda Development Bank to develop a power transmission project in Uganda under the independent power transmission model. The agreement will mark another step in the company’s efforts to participate in global energy infrastructure projects.

These decisions reflect the company’s broader strategy to strengthen its finances, improve grid security, and expand both domestic and international power transmission operations.