The Hindu Business Line : India Power Fund to be operational by fiscal end

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Hyderabad Jan. 26 The Indian Power Fund, with an initial commitment of Rs 1,000 crorewill be operational before the end of this fiscal.

Power Finance Corporation will invest about Rs 200 crore in the fund. Oriental Bank of Commerce has agreed to invest Rs 10 crore and LIC too has evinced interest to be part of the fund, according to the Director of PFC, Mr V.S. Saxena.

It is proposed to register India Power Fund as a trust and a venture capital fund with SEBI with the objective of promoting trusteeship to supervise and administer the trust. As a part of this initiative, it is proposed to promote and incorporate an asset management company for the independent day-to-day management of the trust funds.

Addressing a press conference, , Mr Saxena said "it is proposed to step up funding in the increased liberal power scenario across the entire chain generation, transmission and distribution."

Referring to ultra mega power projects, for which PFC has been chosen as the nodal agency, Mr Saxena said that while the first two have already been awarded, the Krishnapatnam project would be awarded by March and three months, thereafter, Jharkhand project would be finalised.

To meet the increased energy demand in the country, it is proposed to take up at least five more ultra mega power projects and the PFC expects to charge for consultancy role as well.

The corporation, which is raising funds, expects to diversify its borrower portfolio by funding coal, lignite, oil and gas companies and infrastructure agencies that transport and handle fuel or power projects. The funding could also include bio-mass projects.

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