PFC to sanction loans worth Rs68,000 crore in FY11

Loans sanctioned by the company during the current financial year (2009-10) so far have been worth Rs60,000 crore, of which Rs20,000 crore have been disbursed

State-owned Power Finance Corp (PFC) on Tuesday said that it would sanction loans to the tune of Rs68,000 crore in the next financial year, reports PTI.

"Our loan sanction target for the next fiscal (2010-11) is Rs68,000 crore and disbursement is Rs29,000 crore," PFC's chairman and managing director Satnam Singh told reporters in New Delhi.

PFC finances power generation, transmission and distribution projects across the country.

Loans sanctioned by the company during the current financial year (2009-10) so far have been worth Rs60,000 crore, of which Rs20,000 crore have been disbursed. However, the disbursement target is slightly higher at Rs23,000 crore. The company hopes to achieve this goal even as the fiscal comes to an end.

"The (financial) year is yet to get over. We would be able to meet our (disbursement) target," Mr Singh said.

He also said that PFC is keen on picking up as much as 26% equity in power-generation projects in the country. "Right now, we are working out a policy to decide on picking equity stake in power (generation) projects; we would prepare a framework and any company which fits the criteria would be approached," Mr Singh told reporters.

The company would partly utilise its net-worth of Rs12,000 crore for acquiring stakes in electricity generation plants.

Meanwhile, PFC would raise $300 million (about Rs1,400 crore) from State Bank of India's London branch under the External Commercial Borrowing (ECB) route, to be utilised for funding power projects in the country.

PFC has received the Reserve Bank of India's approval for raising the money that expires on 31st March.

 

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