Power Finance Corporation to Provide ₹26,800 Crore for Madhya Pradesh Power Sector Development

New Delhi, February 27 – State-owned Power Finance Corporation (PFC) has signed a Memorandum of Understanding (MoU) with the Madhya Pradesh government to extend ₹26,800 crore in financial assistance to the state’s power utilities. This substantial funding will support capital expenditure projects aimed at strengthening the power infrastructure in the state.

According to PFC, the funding will benefit key entities, including Madhya Pradesh Power Generation Company Ltd (MPPGCL), Madhya Pradesh Power Transmission Company Ltd (MPPTCL), and the state's distribution companies (discoms). The investment is earmarked for major infrastructure developments such as:
  • New supercritical thermal power units
  • Expansion of solar power projects
  • Modernization of hydropower stations
  • Upgradation of power transmission networks
  • Implementation of smart metering
  • Loss reduction measures under the Revamped Distribution Sector Scheme (RDSS)
The agreement was formalized during the Madhya Pradesh Global Investors Summit 2025 in Bhopal, with the presence of Chief Minister Mohan Yadav.

PFC highlighted that this strategic partnership aligns with India's broader energy goals and reinforces its commitment to enhancing power infrastructure while supporting the nation’s economic growth. The initiative is expected to boost energy security for Madhya Pradesh and contribute to India’s journey toward a more sustainable and developed economy.
 
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