Power Finance Corporation (PFC) of India announced the formation of a subsidiary to focus on renewable energy projects and their funding in November last year.
New Delhi-based PFS – incorporated in 2006 – is the investment arm of power trading firm PTC India Ltd. PFS invests in projects, fuel sources, related infrastructure like gas pipelines, LNG terminals, ports, equipment manufacturers like transformers, conductors, insulators, cables etc.
We had mentioned in February this year that , IFC was planning to provide $50 Mn loan to PTC India Financial Services Ltd (PFS), which will be used for lending to companies and projects in the renewable energy space in India.
State-owned Power Finance Corporation was planning to float a subsidiary, Power Finance Corporation Green Energy Ltd, to finance the renewable energy projects in the country as we had mentioned in May this year.
Similarly, PTC India Financial Services listed on the Indian stock markets in April this year. Earlier, PFS was in talks to tie up with two foreign PE players and launch a $100 million fund.
According to reports today, Power Finance Corp. Monday said it plans to start a unit in a month with an initial capital of 12 billion rupees ($270.27 million) to finance renewable power projects to capitalize on growing demand for cleaner fuel sources in India.
“This will help us focus more on the renewable sector,” Power Finance Chairman Satnam Singh told reporters. “Also, we will be then able to understand and serve the requirements of big and small companies better in the segment.”
Power Finance disbursed 5 billion rupees of loans to renewable energy projects in the financial year ended March 31, Mr. Singh said. He said Power Finance is currently financing 26 renewable energy projects totaling 30 billion rupees.