State-run Power Finance Corporation (PFC) expects its rate of loan disbursement to increase 27 per cent to Rs 33,000 crore during the current financial year, as compared to Rs 26,000 crore in 2009-10.
“Till now, we have disbursed more than Rs 27,000 crore and expect the figure to touch Rs 33,000 crore this fiscal. Last year, the figure was around Rs 26,000 crore,” said Rajeev Sharma, Director (projects) of PFC in Kolkata. The government of India owns 89.78 per cent in PFC, while the balance 10.22 per cent is with public shareholders.
Meanwhile, the firm is planning to set up a 100 per cent subsidiary for renewable projects. “Though we are already financing some renewable projects, but the new subsidiary will increase the focus on it. Our board of directors has already cleared the proposal,” he said.
Through its ongoing public issue of infrastructure bonds, PFC plans to raise Rs 5,300 crore and the proceeds will be used to finance infrastructure bonds.
The subscription of bonds, with a face value of Rs 5,000 each, has started on February 24 and will close on March 22. It will be at a fixed rate of interest up to 8.5 per cent and will be payable on an annual or cumulative basis.
However, Sharma said that PFC has no plans for equity financing in ultra mega power projects.
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“We have no such plans as of now. There is no question of such investment as those are all private projects,”
Sharma said. PFC, which is the nodal agency for UMPPs in the country, has till now got 16 proposals. “PFC has already cleared four and two more are in the pipeline for clearance,” he said.