Power Finance Corp along with Tata Capital will set up a $1 billion private equity fund, that would mainly focus on financing for domestic power projects.
"We are in talks with Tata Capital for setting up a power equity fund," PFC Chairman and Managing Director Satnam Singh told reporters here today.
PFC would have 49% in the private equity fund and the remaining shareholding would be owned by Tata Capital. The fund is likely to be finalised in the next 3-6 months.
PFC and Tata Capital would form a joint venture company, with an initial corpus of $300 million which would be gradually increased to $1 billion.
"The value of the fund would be $1 billion but initially we would pump in $300 million," Singh said, adding that the equity fund would focus on financing projects in the power sector.
The public sector lender has already sanctioned Rs 2,200 crore to Videocon for funding the latter's acquisition of oil assets overseas.
"We have sanctioned Rs 2,200 crore to Videocon for their overseas oil assets as they have assured us that majority of the output would from those international assets would come to India," Singh added.
Videocon's oil fields in Mozambique are likely to start production in the next three years.
Meanwhile, PFC today posted 33% rise in net profit to Rs 1,084 crore for the quarter ended September 30, 2012.
The company had reported a net profit of Rs 812 crore in the corresponding period of last financial year.
Total income of the company rose to Rs 4,190 crore during the quarter under review, from Rs 3,150 crore in the year-ago period.
Shares of the company closed down 1.81% at Rs 186.90 on the BSE.
