PTC India Financial inks pact with banks for clean energy project loans

PTC India Financial Services (PFS) has entered into arrangements with scheduled commercial banks whereby the banks will issue letter of credit to project companies in the renewable energy space. These letters of credit will be issued on the basis of letter of comfort issued by PFS and due diligence on certain parameters.

Presently, such project companies are required to approach various banks and negotiate various associated costs for issuance of letter of credit, which generally takes 3-5 months. Under the new arrangement, letter of credit can be opened in a much shorter time on case-to-case basis and project companies shall not be required to separately pursue with each bank.

PTC India Financial Services (PFS) is a non-banking finance company promoted by PTC India. PFS has been granted the status of an Infrastructure Finance Company (IFC) by the Reserve Bank of India. The Company offers an array of financial products to infrastructure companies in the entire energy value chain. PFS also provides fee based services viz loan syndication and underwriting etc.