Power Finance Corporation Ltd’s Subsidiary Forms SPV for Transmission Project

Power Finance Corporation Limited (PFC) announced in a stock exchange filing that its wholly owned subsidiary, PFC Consulting Limited (PFCCL), has established a Special Purpose Vehicle (SPV) company named JAM KHAMBHALIYA LIMITED. This SPV is dedicated to developing the augmentation of Transformation Capacity Transmission at Jam Khambhaliya PS (GIS).

PFC Consulting Limited, as a wholly owned subsidiary of Power Finance Corporation Limited, has been appointed as the Bid Process Coordinator (BPC) by the Ministry of Power, Government of India. The role of BPC involves selecting a developer for Independent Transmission Projects (ITPs) through tariff-based competitive bidding.

In accordance with the guidelines issued by the Ministry of Power for tariff-based competitive bidding, the BPC is responsible for preparing the project profile, initiating land acquisition, and seeking forest clearance if necessary. An SPV is required to undertake these preparatory activities. This SPV will handle various tasks such as conducting surveys, preparing reports, and starting the land acquisition and forest clearance processes.

The SPV will be transferred to the successful bidder chosen via the International Competitive Bidding Process under the Tariff-Based Competitive Bidding Guidelines for Transmission Service issued by the Ministry of Power. The Central Electricity Authority (CEA), through Gazette Notification No. CG-DL-E-01042024-253500 dated April 1, 2024, appointed PFC Consulting Limited as the Bid Process Coordinator for selecting the Transmission Service Provider (TSP) to establish the transmission system via the Tariff Based Competitive Bidding Process.

Consequently, the SPV has been established as a wholly owned subsidiary of PFCCL to develop the transmission scheme mentioned above. After the bidding process is complete, the SPV will be transferred to the successful bidder, who will then develop the project.

About Power Finance Corporation Limited (PFC)

Power Finance Corporation Limited is a Systemically Important Non-Deposit-taking Non Banking Financial Company (NBFC) registered with the RBI as an Infrastructure Finance Company. It provides financial support to the Indian power sector.

On July 2, 2024, the share price of Power Finance Corporation Ltd opened at ₹502.30, touching the day’s high at ₹505.95, as of 10:04 AM on the NSE.

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