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| PFCL may reduce interest rate by 25 basis points |
| BS Reporter / Kolkata Jul 03, 2009, 00:01 IST |
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State-run Power Finance Corporation Limited (PFCL) is looking at a possible reduction in its interest rate by 25 basis points in view of the market conditions, informed a company official in Kolkata today.
Speaking on the sidelines of a seminar on power distribution reforms organised by Confederation of Indian Industries (CII) M K Goel, director (institutional development & administration) PFC said “We always look at re-aligning our interest rates to the market levels. Generally if we reduce it is by 25 basis points or so, we are weighing the options, we might look at reducing interest rates by 25 basis points.”
However, he failed to mention the timeline.
“It will be difficult to say when the rate cut will come into effect,”he said.
The average lending rate of PFC is at present 11.75 per cent.
PFC one of the largest specialised financier of power sector projects in the country expects 15-20 per cent growth in disbursal this financial year.
The company basically provides funds based services like term loans, equipment leasing, bill discounting, buyer's line of credit. It also provides non-funds based services like guarantee services, consultancy services, to the power sector.
Last financial year the total disbursement was to the tune of Rs 21,000 crore.
This financial year the total disbursement is pegged at Rs 22-24,000 crore. The company plans to raise some ratio of this from the market, mainly through bonds, informed Goel. PFC also the nodal implementing agency for the three ultra mega power projects coming up in the states of Orissa, Tamil Nadu and Chattisgarh is also following up the routine processes with the respective state governments, after which Request For Qualification or RFQs will be issued, if all pre conditions are met. He, however, failed to mention the timeline for the issuance of the RFQs.
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