PFC shares rally nearly 2% as firm signs ₹4,829 crore loan agreement with Bhutan’s KHPL for hydropower project; check details

Shares of Power Finance Corporation (PFC) rallied on Monday, September 29, after Bhutan-based Kholongchhu Hydro Power Ltd has signed a term loan agreement worth ₹4,829 crore with state-owned company.

Following this announcement, shares of PFC gained as much as 1.79% to touch an intraday high of ₹404.45 apiece on the National Stock Exchange (NSE). The stock was trading 1.62% higher at ₹403.75 per share at 1:09 PM.

Khorlochhu Hydro Power Ltd (KHPL), a strategic partnership with 60% shareholding by Druk Green Power Corporation Ltd (DGPC) and 40% by Tata Power Company Ltd, is developing the 600 megawatt (MW) Khorlochhu Hydropower Project in Bhutan. The project, with an estimated cost of approximately ₹6,900 crore, including financing charges, is expected to be commissioned in 2029-2030.

According to DGPC, KHPL signed the ₹4,829 crore loan agreement with India's NBFC Power Finance Corporation Ltd (PFC) on Sunday. The agreement also provides for a further standby credit facility of ₹950 crore.

This landmark transaction marks PFC's first cross-border financing in Bhutan and highlights the growing clean energy cooperation between India and Bhutan.

Construction has already commenced, with civil contracts awarded and works underway since January 1, 2025. Power evacuation will involve a 145 km, 400 kV (kilovolt) double-circuit transmission line from the project to the Goling pooling station, which will be constructed by Bhutan Power Corporation Ltd, as reported by the news agency, Press Trust of India (PTI).

Under the agreement, PFC will be the sole lender to the project. The Khorlochhu Hydropower Project in Trashiyangtse Dzongkhag is expected to generate 2,524 million units of electricity annually. The project will help meet Bhutan’s winter demand and enable the export of surplus power to India during the summer months.

PFC share price

In the past five trading sessions, PFC shares fell by 1.51%. Conversely, the stock rose by 6.33% over the last month. It declined 0.23% in the past six months and dropped 9.94% year-to-date. The stock recorded a 52-week high of ₹523.90 on December 6, 2024, and a 52-week low of ₹357.25 on February 17, 2025. As of September 29, the company’s market capitalisation stood at ₹1,33,241.61 crore.