Business Daily from THE HINDU group of publications
Saturday, Jan 05, 2008
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Saturday, Jan 05, 2008 ePaper | Mobile/PDA Version |
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Corporate
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Outlook Markets - Financial Services
The subsidiary would advise big-ticket investors, planning to take equity exposure in the power sector, on viable opportunities, in lieu of an advisory fee. The installed generation capacity in the power sector is to go up by about 78,000 MW by 2012, entailing total investments of around $100 billion. Anil Sasi New Delhi, Jan. 4 To tap the surging interest among investors in the country’s power sector, Power Finance Corporation (PFC) is planning to launch a special purpose vehicle (SPV) to advise potential players on equity investment opportunities in the sector. The move by PFC follows a similar initiative by trading major PTC India Ltd, which has also launched a financial services arm to tap investment avenues in the sector. PFC, which functions as a specialised financial institution lending to the power sector, is in the process of setting up its Financial Advisory Services arm as a subsidiary. This firm would advise big-ticket investors, planning to take equity exposure in the power sector, on viable opportunities, in lieu of an advisory fee. According to PFC officials, the company would function as a separate profit centre. Investor interestThe renewed interest among investors comes as the country’s power sector is working on ramping up the installed generation capacity by about 78,000 MW by 2012, entailing total investments to the tune of around $100 billion, according to Power Ministry estimates. “There is a growing investor interest, especially with regard to equity investment opportunities, in the Indian power sector. The new venture would assist investors put their money into upcoming projects,” a senior PFC official said. PFC had recently tapped the capital market with an IPO that raised Rs 997 crore. While financing of State sector projects would continue to remain the mainstay for the company, it also plans to focus on enhanced funding of private sector projects and on loan syndication for large projects, besides the initiative to kick-off the advisory arm. Earlier, PTC India had set up PTC Financial Services (PFS) as a non-banking finance corporation to undertake investments across the Indian energy value chain. The PTC arm has also seen private equity interest, with Goldman Sachs and Macquarie India Holdings having invested Rs 155.74 crore to pick up a 40 per cent stake in the company. PFS has a mandate to invest in greenfield and brownfield power generation assets, power transmission and distribution assets, apart from energy related infrastructure assets such as gas pipelines, fuel linked ports and electricity equipment. It could also act as a sponsor of energy funds, as well as establishing an asset management company to deploy and manage the funds. More Stories on : Outlook | Financial Services
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