PFC signs MoU worth Rs 1.18 trn with SJVN for renewable energy projects

Power Finance Corporation (PFC) has inked a memorandum of understanding (MoU) with state-owned hydro power firm SJVN Ltd, committing to finance the latter's renewable energy and thermal power projects. The deal is valued at Rs 1.18 trillion and aims to set up 12 gigawatt (Gw) of power generation capacity, predominantly from renewable sources such as solar, wind, and pumped hydro, along with a 660 megawatt thermal power project.

The financial backing from PFC is expected to range between Rs 80,000 crore and Rs 90,000 crore, displaying a significant commitment to these crucial projects. According to a PFC statement, this funding could be augmented to meet the specific needs of the renewable projects, highlighting the flexibility of the partnership.

Nand Lal Sharma, chairman and managing director of SJVN, said the agreement would contribute to the company’s new mission of reaching 12 Gw capacity by 2026 and a long-term vision of 50 Gw by 2040.

Recently, SJVN has also entered into several MoUs with other central public sector utilities to develop renewable energy ventures. Both PFC and SJVN aim to make a considerable impact on India’s energy security and environmental sustainability through large-scale renewable and thermal generation projects, according to the PFC statement.