After the Greater Mohali Area Development Authority (GMADA), Punjab State Power Corporation Limited (PSPCL) is set to hire a merchant banker to raise Rs 10,000 crore through a bond. The selected banker will be paid an arranger fee ranging from Rs 150 crore to Rs 177 crore.Earlier this week, The Tribune had highlighted that the cash-strapped Punjab Government had given its go-ahead to GMADA to raise Rs 15,000 crore through a long-term development bond. The merchant banker chosen for the purpose is to be paid an arranger fee of Rs 191 crore.The proposal to raise funds for the PSPCL through non-convertible debentures (NCDs) or bond–with a merchant banker acting as an intermediary between the power corporation and lending institutions–was discussed at a meeting of the Board of Directors held on Thursday.When contacted by The Tribune, PSPCL Chairman-cum-Managing Director Dr Basant Garg said he could not comment on what transpired at the meeting until its minutes were finalised. Official sources, however, said the proposal was yet to be approved by the Board and had been referred to the accounts committee.Garg acknowledged that three bidders had qualified for the tender to raise the development bond. The Tribune has learnt that the bidders are AK Capital Services Limited, Trust Investment Advisors Private Limited and Real Growth Securities Private Limited. The lowest bid was submitted by AK Capital, which has asked for an arranger fee of 1.5 per cent of the total Rs 10,000 crore fund mobilisation, amounting to Rs 150 crore. The other two bids quoted 1.73 per cent (Rs 173 crore) and 1.77 per cent (Rs 177 crore). All the three entities are SEBI-registered Category-1 merchant bankers.The tender was floated on June 15, with July 29 set as the last date for submitting bids. Technical bids were opened on July 30. The objective of raising funds through a bond or NCDs, as mentioned in the request for proposal (RFP), is to meet the power utility’s capital expenditure requirements. The funds are to be raised in two tranches of Rs 5,000 crore each.The merchant banker selected for the purpose will have to provide “structured financial solutions, with or without the state government’s guarantee”.Interestingly, when the power tariff for the 2026-27 financial year was announced a few months ago, the Punjab State Electricity Regulatory Commission, while allowing a tariff cut, had said that the power utility had a cumulative revenue surplus of Rs 7,851.91 crore. However, during a debate in Parliament earlier this month, Union Power Minister Manohar Lal Khattar pointed out that the financial position of the state’s power utility was “not good”.