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State-owned Power Finance Corporation (PFC) is gearing up to sharpen focus on renewable energy projects next fiscal, as part of the Government drive to increase the share of solar and wind energy in India's total power generation capacity.
“We are in the process of forming a separate subsidiary to handle renewable energy projects – we have already received the Board's approval. The new company will be ready within the next two months,” Mr M.K. Goel, the company's Director (Commercial), told press persons here on Wednesday.
He was in the city in connection with the company's road shows for the public issue of infrastructure bonds that opened on February 24. The company will be raising up to Rs 5,300 crore through the issue.
The company was also setting up two subsidiaries to handle equity funding in power projects and another to offer consultancy service on mergers and acquisitions in the power sector.
Banking licence
On the company's initiative to get a banking licence, he said PFC was in the process of selecting a consultant to advice on a suitable road map for it to get a banking licence.
PFC is part of the consortium that is providing finances to three ultra mega power projects, located in Orissa, Chattisgarh and Tamil Nadu.
“The Orissa and Chattisgarh projects have been facing some environmental clearance issues, but the Orissa project is now close to getting all necessary approvals.
“The project has invited RFQ applications, which closes on March 31, 2011. The RFQ deadline for the Chattisgarh project is June 30, 2011,” Mr Goel said.
Eco issues
Asked about the recent instances when thermal power projects got embroiled in environmental issue, he said the company had stringent eligibility criterion for sanction of finances.
On the East Coast project in Srikakulam district of Andhra Pradesh that is facing some opposition from the local people on environmental grounds, he said PFC's share in the consortium finance was Rs 227 crore. He said the Ministry of Environment and Forest would take a final call on the project shortly.
As on December 31, 2010, India had an installed generation capacity of 1,67,077 MW, with the Government setting a target of 78,700 MW of additional capacity for the Eleventh Plan. Thermal has a major share in this, with about 60,000 MW, followed by hydro with 15,627 MW and nuclear with 3,380 MW
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