What the power sector must now do is price upcoming bids and financing plans for a higher-rate environment. Electricity demand continues to grow strongly
FinTech BizNews Service
Mumbai, 09 October, 2026: The Monetary Policy Committee (MPC) held its 63rd meeting from October 5 to 7, 2026, under the chairmanship of Shri Sanjay Malhotra, Governor, Reserve Bank of India. The MPC members Dr. Nagesh Kumar, Shri Saugata Bhattacharya, Prof. Ram Singh, Dr. Poonam Gupta and Shri Indranil Bhattacharyya attended the meeting.
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Arman Puri, Director, Hindustan Power, has shared a comment on the potential implications of RBI’s repo rate hike on the power and energy sector:
"The first rate hike in over three years was expected. The more important signal is the shift to calibrated tightening, which tells developers to plan for a cycle of increases and not a single move. Power and infrastructure projects are financed largely through long-tenor debt, so the cost of capital flows directly into the cost of electricity.
A 25 basis point increase is absorbable and does not change project economics on its own. What the sector must now do is price upcoming bids and financing plans for a higher-rate environment. Electricity demand continues to grow strongly, and that will keep capital flowing into new capacity."
