PFC may get $75-m Canadian assistance

New Delhi, May 16: THE Export Development Corporation (EDC) of Canada is likely to extend a 75 million dollar line of credit to Power Finance Corporation (PFC).

"Negotiations for the line of credit are in the final stages and a formal agreement is likely to be initialled early next month," PFC chairman and managing director AA Khan said.

The 12-year tenure line of credit would be utilised for financing tied-up projects. Besides the surcharge, PFC would pay 0.25 per cent of the amount drawn if the corporation is not able to utilise the sanctioned amount, Mr Khan said.

PFC would use the credit line to finance generation and transmission of power projects particularly in the private sector.

The corporation has till now sanctioned total term loans of Rs 4837.36 crore to 26 private sector projects, the chairman said.

"We are open to fund acquisitions of power plants and transmission and distribution companies by power utilities," he said.