Power Finance Corporation plans ventures with PSUs to offer financial and technical support services to power projects in India and overseas

Power Finance Corpor­ation (PFC) plans to float joint ventures with central power utilities like NTPC, NHPC and Power Grid Corporation of India (PGCIL) to offer financial and technical support services to power projects in India and overseas.PFC chairman and man­a­ging director Satnam Singh told that the company would exp­lore possibility of enter­ing into strategic joint ven­tures with other power PSUs to offer not only technical support but also total fina­ncial and turnkey solutions.

“We have been con­ducting tariff-based inter­national competitive bidding for ultra mega power projects. We have been financing power sector projects for long. Synergy in PFC expertise and that of companies like NTPC which are into core generation and transmission business can be used to offer total technical and financial solutions,” he said.

“Since we all are power PSUs under the same umbrella of power ministry, forming joint ventures will not have that much of a teething problem,” he said.PFC, NTPC, NHPC and PGCIL have already floated a joint venture called Energy Efficiency Services to focus on energy conservation.

“Similarly we will join hands to take care of domestic and international projects. PFC knows the sources of funds and can take care of financing part. We know as to what all is required for financial closure of a power project. When it comes to technical support we can collaborate with the implementing PSUs. As they are really into setting up power plants, they know as to what can be the technical parameters that have to be looked into,” Singh said.

PFC will explore whether there should be separate joint ventures for thermal, hydroelectric gene­r­ation and transmission or one joint venture with independ­ent centers of profit.

PFC has already diver­sified from being a power sector lending institution for electricity generation and distribution assets to be­come a facilitator of fuel tie-ups and manufacture of equipment.

PFC in 2008 added a backward lending wing to offer financial assistance to coal mining and washeries, equipment manufacturing, and all other projects associated with electricity generation.