State-owned Power Finance Corporation is planning to float a subsidiary, Power Finance Corporation Green Energy Ltd, to finance the renewable energy projects in the country.
“We have already received a certificate of incorporation from the government for floating this subsidiary and we will begin operation soon,” R Nagarajan, director (finance) of PFC, told reporters.
Last financial year, PFC had sanctioned around Rs 3,000 crore to various projects under the renewable energy segment and disbursed around Rs 1,800 crore during the period.
“Loan disbursements to the renewable energy sector will be higher than that seen during the last fiscal as there are sound interests shown by both private and public players in this vertical,” he added.
India has an aggregate installed capacity of 18,655 Mw of renewable energy projects of the estimated potential of 84,776 Mw. Under the Jawaharlal Nehru National Solar Mission, the country aims to produce 20,000 Mw of grid connected solar power by 2022.
“We have strategically increased our focus on renewable energy projects, including solar, wind, biomass and small hydro projects to capitalise on the focus on the renewable energy initiatives,” he said.
He also said that the number of projects under the solar mission would come for financial closure in the near future.
Barring a separate subsidiary in the renewable energy space, PFC will also enter the debt syndication space.
“We have acted as the lead financial institution for several projects. We intend to increase our focus on debt syndication activities in the power sector and are waiting for approval to start operations in this segment,” Nagarajan said.
The infra financing company is also mulling to enter the banking space in future.
“We are evaluating various options to enter the banking space. We are in the process of appointing a consultant in this regard,” he said.
PFC has a total of 7 per cent disbursements to private sector, 65 per cent to state sectors and rest to the Central government agencies in FY11. Its project-wise loan assets stood around Rs 99,570 crore in the last financial year.
The company has posted a 14 per cent rise in its net profit to Rs 2,618.8 crore in FY11 compared to Rs 2,357.24 crore reported an year earlier.
The total income rose 25.8 per cent to Rs 10,160.55 crore in the last financial year.
