Power Finance Corp to boost loans to renewable projects
To achieve the target, the company’s disbursements towards renewable energy projects could go up to Rs 3 lakh crore in the next seven years, he said.
Power Finance Corp plans to increase its loan book exposure to renewable energy projects, including funding new areas such as green hydrogen and ammonia, to 27 per cent (with large hydro) by FY30 from the current 10 per cent, chairman Ravinder Singh Dhillon told ET.
To achieve the target, the company’s disbursements towards renewable energy projects could go up to Rs 3 lakh crore in the next seven years, he said.
The state-owned company expects to play a significant role in funding green projects in the future and position itself as the focal agency for energy transition.
The company has the advantage of providing funds for longer tenure and at competitive rates and taking larger exposures, Dhillon said.
It is looking to fund projects like offshore wind, pumped hydro storage, solar modules and cells, among others, in the clean energy space.
“We have the largest lending portfolio in the renewable energy space with a renewable book of Rs 48,200 crore,” he said.
As for non-performing assets (NPA), it is at the lowest level ever in the last six years for the company, he added.
The consolidated net NPA ratio of the company neared 1 per cent by the end of FY23, as compared with 4.99 per cent at the end of FY19.
Efforts in resolution of stressed assets have led to its reduction, he said. There has also been a financial discipline brought in by state discoms through the Revamped Distribution Sector Scheme, where PFC is the nodal agency.
Financial health of state distribution companies has improved, and the aggregate technical and commercial losses have fallen over the years except during the pandemic, Dhillon said.
The latest annual rankings of power distribution utilities, published by PFC, stated that the aggregate technical and commercial losses have improved to 16.5 per cent in FY22, significantly lower than 19.9 per cent in FY20 and 21.5 per cent in FY21.
The company has started diversifying into infra and logistics space with funding of metro projects, ports, refinery etc.
Source : ET
