PTC floats SPV for core funds

PTC India, formerly Power Trading Corporation of India, is planning to launch an infrastructure fund to pick up equity in various power projects coming up in India. For this, it has floated a special purpose vehicle (SPV)- an investment company - PTC Financial Services (PFS).

PTC would approach the capital market within a few months to raise the funds, said T N Thakur, chairman and managing director, PTC India. "We will set up the fund within a few months and the plans will be ready by next month. We have not decided on the size of the fund and how to utilise it. It will be a substantial amount," he said.

Sources in the know of the developments said PTC was looking to raise at least Rs 1,000 crore from the capital market and the fund would be to the tune of Rs 2,000 crore. The company is also talking to financial institutions such as Infrastructure Development Finance Corporation (IDFC) for launching and operationalising the fund. PTC is also looking at the option of listing the new SPV at a later stage.

The seventh annual general meeting of PTC held a few months ago had given a go-ahead signal for the formation of a subsidiary in the nature of an investment company for the PTC's equity investments in power projects.

PTC, a pioneer in starting a power market in India in the public-private partnership model, is promoted by public sector units such as Power Grid Corporation of India, Power Finance Corporation, National Thermal Power Corporation, National Hydro-Electric Power Corp, Damodar Valley Corp, Tata Power Company, and financial institutions such as IDBI, IDFC, IFCI, GIC and LIC