PFC plans arm to fund green projects

The government-run Power Finance Corporation (PFC) wants to increase its presence in the rapidly growing renewable energy sector. The company plans to incorporate a subsidiary to focus on non-conventional energy sources such as wind power, solar and biomass projects.

A PFC official told Business Standard, “The company sanctioned Rs 603 crore for renewable energy projects and disbursed Rs 266 crore in 2009-10. In 2010-11, PFC is expected to sanction Rs 1,500 crore and disburse Rs 350 crore in the segment. Thus, it has worked out the modalities to spin off a subsidiary to look after renewable power projects.”

Chairman and Managing Director Satnam Singh said PFC had sanctioned a loan of Rs 250 crore for a solar energy unit to KSK Energy. It had also received requests for funding wind power equipment manufacturing units, he said.

To increase the business in renewables, co-generation, energy saving projects and captive power plants, PFC has empanelled 31 business development associates. It has also signed an agreement with Gujarat Energy Development Agency for development of renewable energy generation projects. In 2008-09, it had sanctioned Rs 560 crore for projects in the sector. It has also got a mandate to assist state power utilities to prepare clean development mechanism projects under the Kyoto Protocol.

Under the accelerated power development and reform programme, the company is expected to sanction Rs 9,000 crore and disburse Rs 2,500 crore in 2010-11.