Power Finance Corp to raise $4 bn to fund projects


Kolkata : Power Finance Corp (PFC), a dedicated power sector financing institution, will raise $4 billion from the domestic market in 2008-09 to fund several power projects in the country.

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“We will raise $4 billion from the domestic market to fund several power projects,” V.K. Garg, chairman and managing director of PFC, told reporters on the sidelines of an event here Thursday.

“It’s easier to raise funds through the domestic market as the risk factor, as far as currency risk is concerned, is lower,” he said.

He said there was no slowing down of the power sector and there is a very good liquidity in the market.

PFC is also expecting a disbursal of $6.5 billon in 2009 and this year’s amount is likely to reach $4.5 billion.

Garg said 52,000 MW of power projects were now being executed and about 25 percent would be in operation by next year. Of the total 52,000 MW power project, 20 percent would be funded by PFC.

“PFC will also float a company to give investment proposals to viable power projects in the country,” he added.

During April-December 2007, PFC raised Rs.90 billion and it was targeting to raise an additional amount of Rs.40 billion by March 31 this year.

In the same period, PFC has sanctioned Rs.460 billion in loans and the figure is expected to reach Rs.500 billion by the end of the fiscal year.

PFC’s disbursements in April-December 2007 stood at Rs.115 billion and the amount is likely to go up to Rs.200 billion by March 31 this year.