Power Finance Corporation (PFC) is seriously considering financing nuclear power projects. PFC is in talks with Nuclear Power Corporation (NPCIL) to explore the possibility of funding nuclear power projects, says the company?s top executive.
Following signing of the India-US nuclear deal, India has envisaged adding 63,000 mw nuclear power generation capacity by 2032 from the current 4,560-mw level. The cost of setting up nuclear power projects is estimated at Rs 8-10 crore per mw. That entails huge funding opportunities for a company like PFC.
NPCIL, a cash-rich company, has been financing its projects with internal accruals so far. But the company?s internal resources cannot meet financing requirement of the capacity addition of the scale envisaged by the government.
?We are in discussion with NPCIL to explore the possibility of funding nuclear power projects,? PFC chairman Satnam Singh told FE. Nuclear power generation has been the sole preserve of NPCIL so far.
However, once the nuclear liability bill is cleared, action will start on the ground. Several power project developers including public thermal generator NTPC and private players like Reliance Power and Tata Power have unveiled plans to enter nuclear power generation business. PFC?s networth is estimated at Rs 13,035 crore.
Meanwhile, it has also bagged infrastructure finance company (IFC) status from the Reserve Bank that will allow it the flexibility to increase funding to power projects by Rs 20,000-50,000 crore over the long term.