Power Finance Corporation Ltd.

Power Finance Corporation (PFC) is planning to set up a $1-billion private equity (PE) fund in joint venture (JV) with Tata Capital to invest in the equity of private power projects in which PFC will have 49% stake while Tata capital would have 51% stake.

Currently, PFC is in the process of finalizing the JV terms. Over the next six-nine months period, the fund is expected to become operational. Initially the company is targeting a corpus of $250-300 million. The power sector lender has already started funding for the availability of fuel sources such as coal mines, coal transportation facilities, and lying of gas pipelines to bridge the gap in availability of fuel sources.

Recently Power Finance Corporation (PFC) has disbursed Rs 7,400 crore of transitional loan to five financially ailing State Electricity Distribution Utilities (Discoms). These states include Punjab, Haryana, Uttar Pradesh, Rajasthan and Tamil Nadu.

PFC provides large range of financial products and services like project term loan, lease financing, direct discounting of bills, short term loan, and consultancy services for various power projects in generation, transmission, distribution sector as well as for renovation and modernization of existing power projects.