PFC plans JVs with other state power utilities

To offer financial and technical support services to projects.

Power Finance Corporation (PFC) plans to form joint ventures with state-run power companies such as NTPC, NHPC and PowerGrid Corporation to offer financial and technical support services to projects in India and abroad.

“We are working out the modalities to form one or more JVs with power PSUs in this financial year (2010-11). It will be strategic JVs, for financial and technical services, besides turnkey solutions,” a senior PFC official told Business Standard.

The company has also diversified into lending for projects which facilitate power generation, such as coal mining and power equipment.

PFC has expertise in financing power projects, while NTPC and NHPC have expertise in generation of power. PowerGrid is the largest power transmission firm in the country. “We will combine the synergies of all PSUs — technical and financial — and offer services together,” the official added.

It hasn’t decided whether to form a single JV or more than one with the other firms.

PFC, NTPC, NHPC and PGCIL have already floated a joint venture called Energy Efficiency Services to focus on energy conservation. The above JVs could be on similar lines, the official said.

The company also plans to set up a centre of excellence in Sonepat, Haryana. The company has identified land for the training centre, which is expected to come up in 2011-12. Construction would begin once approval comes for land allotment.

“The training institute will be funded from internal accruals of the company and we will offer training to people in the power sector through our programmes and courses,” the official said, refusing to divulge financial details.

The proposed centre would be similar to that of NTPC’s Power Management Institute in Noida, where training and development is done for middle and senior-level personnel in the sector.