‘PFC is open to funding nuclear power projects’

Font Size

Print

Feedback

Email

Discuss

India’s power sector needs massive funds. In the 11th Plan alone, the projected requirement is Rs 10.6 lakh crore. A large part of that will be met through Power Finance Corporation (PFC), which is entrusted with the task of providing fund and non-fund support to state and central power projects. It is also the government’s nodal agency to channel investments into the power sector. Satnam Singh, who has recently taken over as chairman & managing director of the state-owned financial institution and non-banking financial company, discussed his new business strategies and challenges ahead with FE’s Anupama Airy. Excerpts:

What new business segments are you exploring to expand Power Finance Corporation’s operations?

I plan to create focused business units. For instance, the biggest concern facing the power sector today is fuel and equipment supplies. While PFC does not have a direct role here, we can pitch in by funding capital equipment projects as also coal mining operations. I intend to create possibilities for funding these two areas. A separate unit has been created especially for this as part of our backward integration. In addition, we are also looking at funding renewable energy projects such as solar, wind and biogas. PFC has targeted sanctioning Rs 2,000 crore in the next four to five months for renewable projects.

Have you had any discussions with equipment manufacturers?

The country is set to witness huge investments in capital equipment manufacture. Some of the companies that have already finalised plans to set up equipment manufacturing shops include the L&T-Mitsubishi joint venture for supercritical power equipment, besides Jindal Steel-Toshiba, NTPC-Bhel and Reliance Infrastructure-Shanghai Corporation of China.

I have already had discussions with AM Naik of L&T and Sachin Jindal of JSW to fund their equipment manufacturing plans. Both have welcomed the move and shown keen interest. PFC has never before funded any capital equipment project. This is a new beginning and I am confident of securing a large chunk of business.

What about the opportunities emerging in the nuclear power business after the 123 Agreement with the US?