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Power Finance Corporation Green Energy – PFC Subsidiary to become one of the biggest Green Energy Financiers in India

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Power Finance Corporation Green Energy has been floated as a subsidiary of one of India’s biggest power sector financiers Power Finance Corporation.As the name implies the company’s mission is to provide loans to India’s Green Energy Industry.Note India requires around  $10 billion dollars according to the government plans of building 17 GW of Alternative Energy Capacity in India between 2012-2017 which is low in my view.However even this low target will require a massive amount of debt financing to the tune of around $6-7 billion annually.Power Finance Corporation is one India’s largest infrastructure financing companies owned by the government.The company which has billions of dollars of loan assets to the Power sector in India has naturally entered the fast growing Green Energy area as well.

Note PFC has already given $400 million to different projects in the Renewable Energy area and has signed an intent to sanction around $300 million more.Wind Power in India is the biggest Renewable Energy Industry in India and Solar Power is seen to be growing at a fast pace as well under India’s JNNSM Solar Subsidy.Debt Financing has been a major hurdle for solar energy in India.However with major financial intermediaries like REC,PFC,SBI,ADB entering the sector some of the problems may be ameliorated.

PFC subsidiary will lend to green energy sector

State-owned Power Finance Corporation is planning to float a subsidiary, Power Finance Corporation Green Energy Ltd, to finance the renewable energy projects in the country.“We have already received a certificate of incorporation from the government for floating this subsidiary and we will begin operation soon,” R Nagarajan, director (finance) of PFC, told reporters.Last financial year, PFC had sanctioned around Rs 3,000 crore to various projects under the renewable energy segment and disbursed around Rs 1,800 crore during the period.“Loan disbursements to the renewable energy sector will be higher than that seen during the last fiscal as there are sound interests shown by both private and public players in this vertical,” he added.


Abhishek Shah

One Response so far | Have Your Say!

  1. Binod J Kulakkatil

    Interested to start wind mill project in Attapaidi, Kerala