PFC To Foray Financial Advisory Services

Kolkata: Power Finance Corporation (PFC) is confident of making an foray into financial advisory services sector in the next six weeks. To start with, the company will hold a minority stake of around 30 per cent in the special purpose vehicle (SPV), and a consortium of corporates likely to hold the residual stake from the power sector. The SPV will help private equity (PE) investment in the Indian power sector. The company, currently engaged in specialised debt-financing in power sector, is looking forward to emerge as an equity investor in the long term. They are trying to appoint the captains of Indian power sector including representations from both thermal and hydel in the venture. As an advisory service provider, its role will be limited to bridging the gap and help in the matchmaking. They are hoping its disbursals to grow by 15 per cent this fiscal and the sanction aim for the next fiscal likely to go up from $4.5 billion to $ 6.5 billion. The finances are likely to be raised from the domestic market as the recent ECB norms do not confirm use of foreign currency loan in projects at home.