CRISIL has enhanced the rated amount while retaining 'AAA/Stable' ratings on Power Grid Corporation (PGCIL) on the debt programmes and bank facilities. The rated amount enhanced to Rs 25 billion from Rs 15 billion for total bank loan facilities.

CRISIL's ratings continue to reflect the strategic importance of PGCIL to the Government of India (GoI), as it is the only company authorised to transmit power across states-it carries about 50% of the total power generated in India.

In the past, GoI not only extended equity support for PGCIL's capital expenditure (capex), but also guaranteed the company's loans from multilateral lending agencies. The ratings also factor in PGCIL's healthy operating efficiency and sizeable cash accruals.

CRISIL believes that PGCIL will maintain its robust financial risk profile over the medium term, despite its planned debt-funded capex, backed by strong demand for power and the regulated tariff regime. PGCIL is of strategic importance to India's power sector, given its role in developing and operating the national power transmission network. The outlook may be revised to 'Negative' in case of significant delays or default in payments by SPUs to PGCIL.

Shares of the company declined Rs 1.6, or 1.62%, to trade at Rs 97.30. The total volume of shares traded was 136,910 at the BSE (11.03 a.m., Friday).