New Delhi, April 2: Power Finance Corporation Ltd (PFC) has appointed SBI Capital Markets as the lead manager to set up the India Power Fund with an initial corpus of $ 5 billion to help PFC meet the capacity addition targets in the ninth and tenth plan periods.
SBI Caps is expected to submit its report by the month-end and the India Power Fund is expected to be established in the current financial year. The roadshows and other modalities to generate the resources from financial institutions are to be finalised by the lead manager.
Announcing the financial results of the company during 2002-03, PFC chairman and managing director A. A. Khan said, “We are confident of establishing the India Power Fund that will enable us to pick up equity in independent power projects and also meet our targets during the eleventh and twelfth five-year plan periods.”
For the first time PFC registered a net profit of more than Rs 1000 crore during 2002-03. The net profit of the power corporation jumped 37.1 per cent to Rs 1,067 crore during 2002-03 as against Rs 778 crore last year.
In another major move, PFC will now extend loans at par with AAA-rated companies to public sector power firms like National Thermal Power Corporation, Power Grid Corporation of India and National Hydro Electric Power Corporation. PFC had already decided to extend loans to these companies last year.
Power Finance Corp recorded a jump in its resources raised in 2002-03 at Rs 7,002 crore against Rs 4,398 crore previous year. Total income was up by 24 per cent to Rs 2,598 crore in 2002-03 from Rs 2,096 crore in 2001-02.
The company lent Rs 7,337.5 crore as against the target of Rs 4,500 crore fixed for 2002-03. It plans to establish a fund to set up non-conventional projects like wind farms in various states.