PFC plans to take equity participation in power projects
BS reported that Power Finance Corporation Ltd is now looking at equity funding opportunities in power projects and also looking at mining as prospective areas for growth. The day may not be too far off, as the corporation has been providing funds for power projects.
Mr D Ravi ED of PFC told reporters that PFC, the country’s largest listed term lending NBFC dedicated to power sector financing, 33% growth in sanctions, 21% growth in disbursements and 22 % growth in net profit.
He said that lending to the private sector was 7% of the total disbursements, 65% for state sectors and rest for centre. Corporation’s project wise loan assets stood around INR 99,570 crore.
Meanwhile, the Corporation which has been financing debt for power project is now looking at equity participation. “
Mr Nagarajan director finance of PFC said “We have moved the proposal to the ministry of power and asked for a few clarifications including if we should restrict our equity participation only in PSU developed projects or we can participate in private sector projects too.”
Mr Ravi added that the corporation will also look at funding standalone coal mine development projects. He told “Till now, coal mine was part the full project, including development of power plant and coal mine, now we are looking at funding standalone mine development projects.”
Source – Steel Guru