Power Finance Corporation (PFC), state-run lending agency is likely to raise over Rs 22,000 crore through infrastructure and tax-free bond issues during the current financial year (2011-12) to part fund its borrowing requirements. The company’s (borrowing) target for the current fiscal is Rs 30,000 crore, of which it has already raised Rs 3,400 crore from the follow-on offer, Rs 3,000 crore via bonds and Rs 1,000 crore from term loans.
The government approved raising Rs 5,000 crore through tax-free bonds and Rs 7,000 crore through infrastructure bonds during the fiscal and the remaining Rs 11,000 crore may come from another bond issue or external commercial borrowings (ECBs). 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 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). 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.
| Company Name | CMP |
|---|---|
| Power Finance Corp | 464.85 |
| REC | 373.35 |
| Indian Railway Fin. | 104.85 |
| NHIT | 151.00 |
| Satin Creditcare | 174.75 |
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