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PFC Subsidiary Forms SPV to Boost RE Integration

Updated on: Dec 3, 2024, 3:02 PM IST
PFC’s subsidiary PFCCL incorporates Kurnool III PS RE Transmission Ltd SPV to enhance transmission for integrating additional renewable energy projects.
PFC Subsidiary Forms SPV to Boost RE Integration
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Power Finance Corporation Limited (PFC) informed the exchanges that Kurnool III PS RE Transmission Limited, a Special Purpose Vehicle (SPV), has been incorporated as a wholly owned subsidiary of PFC Consulting Limited (PFCCL). PFCCL itself is a subsidiary of Power Finance Corporation Limited. The SPV is tasked with strengthening the transmission system at Kurnool-III PS for integrating additional renewable energy (RE) generation projects.

Role of PFC Consulting Limited

The Ministry of Power, through a Gazette Notification, dated August 21, 2024, appointed PFCCL as the Bid Process Coordinator (BPC). PFCCL’s responsibility includes overseeing the selection of the Transmission Service Provider (TSP) for this project via a Tariff-Based Competitive Bidding Process.

Functions of the SPV

The SPV will undertake preparatory activities for the project, including:

  • Conducting surveys and preparing reports.
  • Initiating the process of land acquisition.
  • Seeking forest clearances, if required.

These activities are critical to ensuring the smooth execution of the transmission project.

Once the International Competitive Bidding process is completed, the SPV will be transferred to the successful bidder. This bidder will take over the development of the transmission system in line with the guidelines for tariff-based competitive bidding issued by the Ministry of Power.

Significance of the Project

The establishment of this SPV is a vital step toward supporting India’s renewable energy goals. By facilitating the integration of additional RE generation projects, it strengthens the nation’s transmission infrastructure and contributes to achieving sustainable energy development.

This initiative showcases a collaborative effort between PFCCL, the Ministry of Power, and private sector players to boost India’s renewable energy capacity and transmission network.

On December 3, 2024, PFC share price opened at ₹496.80, touching the day’s high at ₹503.60, as of 9:49 AM on the NSE.

 

 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

Published on: Dec 3, 2024, 11:57 AM IST

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