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PFC to raise Rs22,000 cr from infra, tax-free bonds this fiscal

PFC to raise Rs22,000 cr from infra, tax-free bonds this fiscal
PTI
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First Published: Mon, Jul 18 2011. 03 26 PM IST
Updated: Mon, Jul 18 2011. 03 26 PM IST
New Delhi: State-run lending agency Power Finance Corporation (PFC) plans to raise over Rs22,000 crore through infrastructure and tax-free bonds during the current financial year to part fund its borrowing requirements.
“Our (borrowing) target for the current fiscal is Rs30,000 crore, of which we have already raised Rs3,400 crore from the follow-on offer (FPO), Rs3,000 crore via bonds and Rs1,000 crore from term loans,” PFC chairman and managing director Satnam Singh told reporters.
PFC has received approval from the government to raise Rs5,000 crore through tax-free bonds and Rs7,000 crore through infrastructure bonds during the fiscal and the remaining Rs11,000 crore may come from another bond issue or external commercial borrowings (ECBs).
The company’s borrowing target in the previous fiscal (2010-11) was Rs27,000 crore.
The company utilizes these funds for lending to power projects.
PFC, which has so far allotted three independent transmission projects (ITPs) to successful bidders, will finalize two more such projects this financial year (2011-12).
“The special purpose vehicle (SPV) for one of the ITPs is in place and we have received 22 bids for that project,” Singh said.
The first project to be awarded this year links Nagapattinum and Cuddalore in Tamil Nadu to Madhugiri in Karnataka and stretches 500-km, while the second is a 700-km-long link from Nagapattinum (Tamil Nadu) to Padghe (Maharashtra).
He said the second project is facing problems regarding its linkage with the generating station.
These independent transmission projects were envisaged on the lines of ultra-mega power projects (UMPPs) for encouraging private sector participation in the transmission sector, which is currently a monopoly of state-owned PowerGrid Corp.
Singh also said that PFC -- the nodal agency for UMPPs -- would be able to invite initial bids for the Cheyyur project by September this year.
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First Published: Mon, Jul 18 2011. 03 26 PM IST
More Topics: PFC | Bonds | Borrowings | Power | Finance |