Power Finance Corporation (PFC) aims to increase loans for renewable energy projects, says chairman and managing director Parminder Chopra.
“Our share of loans to renewable energy projects is going to increase. This much I can say. It (the pace of growth) will depend on the opportunities available,” she said.
Currently, the company’s renewable energy portfolio is at around 12-13%.
On Friday, PFC announced that it has entered into loan agreements worth more than Rs 2.37 trillion with 20 companies.
These firms include Adani Group, Greenco, ReNew Power, Continuum, Avaada, JBM Auto, Rajasthan Renewable Energy and Megha Engineering and Infrastructure, among others. Specifically, the company is looking to fund projects like offshore wind, pumped hydro storage, solar modules and cells, among others in the clean energy space.
“Going forward, we see a lot opportunities in the renewable space. PFC will have a specific focus on these areas,” she added.
At the recent G20 meetings, Prime Minister Narendra Modi announced that India aims to produce around 50% of the country’s total energy requirement through non-fossil sources by 2030.
Apart from power, the government has allowed the company to allocate up to 30% of its loan book to the infrastructure sector.
“While our focus will remain on the power sector, we will gradually increase funding to the infrastructure sector. These may include refineries, airports, metros, refineries etc,” she said.
The company’s consolidated loan book rose 13% year-on-year to Rs 8.6 trillion as on March 31. On an average, it aims to disburse loans worth Rs 85,000 crore in 2023-24 (April-March), similar to the previous financial year.
Gross non-performing asset ratio fell to 3.66% as on March 31 from 5.02% a year ago.
Recently, the company announced that it will raise Rs 5,000 crore through the public issue of secured non-convertible debentures. The tranche I issue of the debentures is for a base issue size of Rs 500 crore with a green shoe option of up to Rs 4,500 crore.
The tranche I issue opened on Friday, and will close on July 28.
Out of the net proceeds of the tranche I Issue, at least 75% will be utilised for onward lending, and debt servicing whereas up to 25% will be used for general corporate purposes.
Overall, the company is looking to borrow Rs 18,000 crore in 2023-24.
As of March 31, the company’s total borrowings stood at Rs 3.6 trillion. Around 80% of the non-bank lender’s borrowings comprise of private placement and foreign currency borrowings. The remaining 20% is made up of term loans.