PFS approves loans of over Rs 1,000 cr to power projects

PTC India Financial Services (PFS) has approved loans of over Rs 1,000 crore to power projects, bulk of them in renewable energy space.
At its board meeting, PFS approved project lending of a little over Rs 1,000 crore to established players with proven track record, official sources said.
Refusing to divulge individual company details, sources said bulk of the projects are in renewable energy space. Loan of Rs 540 crore has been sanctioned for solar projects and Rs 265 crore for wind projects.
Hydroelectric projects have got Rs 140 crore from PFS and capital thermal power plants another Rs 150 crore.

In one of the projects in the solar space, PFS is the sole lender and is lending Rs 300 crore. The 50 MW project in Madhya Pradesh is a joint venture between a leading Public sector company, NEEPCO and a private player chosen after bidding. The project is likely to come up by January 2015.
"PFS is emerging as first port of call for power projects in the country, including renewable energy. This is primarily due to their extensive knowledge of the sector, thorough due diligence and then quick sanction and disbursal of loans," said an official with a company that has borrowed from PFS in the past.

With NDA government's focus on renewable energy, a number of projects are beginning to take shape or are in the process of being constructed. There is keen interest in renewable energy projects from both public and private sector companies.
India, with abundant sunshine through the year, long coastline ideal for wind power and water resources, is ideal for renewable energy. While bulk of India's current power generation is coal based, which is both polluting and a finite source, renewable energy promises to significantly cut down pollution levels.
Companies are already queueing up at banks and power sector specific lending companies like PTC India Financial Services (PFS) to take loans.