PFC to sanction loans worth Rs 68,000 cr in FY11

State-owned Power Finance Corp today said it would sanction loans to the tune of Rs 68,000 crore in the next financial year.

"Our loan sanction target for the next fiscal (2010-11) is Rs 68,000 crore and disbursement is Rs 29,000 crore," Power Finance Corp (PFC) CMD Satnam Singh told reporters here.

PFC finances power generation, transmission and distribution projects across the country.

Loans sanctioned by the company during the current financial year (2009-10) so far have been worth Rs 60,000 crore, of which Rs 20,000 crore have been disbursed. However, the disbursement target is slightly higher at Rs 23,000 crore. The company hopes to achieve this goal even as the fiscal comes to an end.

"The (financial) year is yet to get over...We would be able to meet our (disbursement) target," Singh said.

Singh also said PFC is keen on picking up as much as 26 per cent equity in power generation projects in the country.

"Right now we are working out a policy to decide on picking equity stake in power (generation) projects, we would prepare a framework and any company which fits the criteria would be approached," Singh told reporters here.

The company would partly utilise its networth of Rs 12,000 crore for acquiring stakes in electricity generation plants.

Meanwhile, PFC would raise $300 million (Rs 1,400 crore) from State Bank of India's London branch under the External Commercial Borrowing (ECB) route, to be utilised for funding power projects in the country.

PFC has received the Reserve Bank of India's approval for raising the money that expires on March 31.