Power Finance Corporation to Mobilize ₹10,000 Crore via Public Bonds to Drive India’s Energy Transition – EQ
In Short : Power Finance Corporation (PFC) is set to raise ₹10,000 crore through public bonds, its first such issue in more than 10 years. With bank lending growth slowing, PFC is turning to retail investors for capital. The funds will be used to strengthen infrastructure financing, focusing on power and renewable energy projects to support India’s green growth.
In Detail : Power Finance Corporation (PFC) is preparing to raise ₹10,000 crore through a public bond issue, marking its return to this route after over a decade. The move comes at a time when bank lending growth has shown signs of slowing, prompting the company to explore alternate ways to secure funds for critical infrastructure financing.
The public bond issue is expected to open up new opportunities for retail investors to participate in the growth story of India’s power sector. By broadening its funding sources, PFC aims to reduce dependence on traditional banking channels and enhance financial resilience. This also reflects growing confidence in the domestic capital market.
According to officials, the funds raised will be primarily directed toward financing infrastructure projects, especially in the power sector. Given India’s increasing focus on clean energy, a significant share of these resources is likely to be allocated to renewable energy development and green initiatives.
This move aligns with PFC’s broader mission of supporting India’s energy transition. As the country expands its renewable capacity and modernizes its grid infrastructure, institutions like PFC play a crucial role in ensuring that financing gaps do not hinder growth. The bond issue could also help accelerate project execution timelines.
Retail investors are expected to show strong interest, considering the steady returns such bonds typically offer. PFC’s strong financial track record and government backing add further credibility, making the bonds a reliable choice for those seeking stable, long-term investments. This could also deepen retail participation in India’s bond market.
Market experts view this as a strategic step by PFC, especially at a time when India is pushing toward ambitious targets in renewable energy and green infrastructure. Accessing capital through diversified means is critical to meeting these goals, and PFC’s move sets a precedent for other power sector financiers.
In recent years, financing for renewable projects has emerged as a key priority for lenders, but the sector’s scale demands consistent capital inflows. PFC’s bond issue could act as a catalyst for other institutions to adopt similar strategies, ensuring adequate funding for energy transition projects across the country.
The decision also comes as the government emphasizes self-reliance in energy and infrastructure development. By tapping into public savings, PFC not only mobilizes funds but also fosters a sense of collective participation in India’s growth story, connecting everyday investors with the nation’s sustainable future.
