Earlier this month we had noted that distribution licensees will now have to procure short-term power (less than or equal to one year) through competitive bidding say the draft guidelines of the Power Finance Corporation (PFC). This is expected to reduce the overall cost of procurement of power. The short-term power market presently comprises 10 per cent of the total electricity procured in India.
Power Finance Corporation (PFC) of India decidced to form subsidiary to focus on renewable energy projects and their funding in November of 2010.
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.
As Panchabuta had mentioned in July last year, PTC India, was mulling floating two private equity funds as part of efforts to strengthen its financing capabilities.
In January this year, it was noted that power trading firm PTC India was in talks with a sovereign wealth fund for setting up a private equity fund, which is likely to have an initial capital of about $ 100 million.
Sources said PTC India is looking to float a private equity fund and is in advanced talks with a sovereign wealth fund. To begin with, the PE fund would at least have $ 100 million as capital, they said.
In an interview to BusinessLine, PFC Chairman and Managing Director Satnam Singh said that, PFC believes that the renewable energy space in India provides significant untapped potential. To tap this opportunity, the renewable business group of PFC was converted into PFC Green Energy Limited as a wholly-owned subsidiary of the company. This company will exclusively extend finance and financial services to promote green (renewable and non-conventional) sources of energy with an authorised capital of Rs. 1,200 crore and subscribed share capital of Rs.5 lakh crore. The company received its certificate of commencement of business on July 30, 2011. To tap the renewable energy business in the state and private sectors, the corporation has given thrust to renewable energy and clean development mechanism (CDM). During 2010-11, loans amounting to Rs. 974 crore were sanctioned to support a capacity of 202 MW for solar and biomass generation projects in the state and private sectors.
He further added that, the group has already started its business by financing large project for its expansion of power equipment manufacturing / production facilities. PFC is expanding this business with several funding proposals on hand to finance power equipment manufacturing facilities such as the solar photovoltaic (PV) facilities.