PFC sets up SPV for independent transmission projects; stock rises over 3%
Shares of Power Finance Corporation (PFC) gained more than three per cent on June 20 as the public-sector undertaking (PSU) announced that it will set up a special purpose vehicle (SPV) for the development of independent transmission projects. The SPV ‘Neemrana II Kotputli Transmission’ will implement the identified preparatory activities for the transmission projects under PFC.
‘’Neemrana II Kotputli Transmission Limited for development of “Transmission system for evacuation of power from Rajasthan REZ Ph-IV (Part-1: Bikaner Complex) Part-B”, a Special Purpose Vehicle (SPV) for development of Independent Transmission Projects has been incorporated as wholly owned subsidiary of PFC Consulting Limited (a wholly owned subsidiary of Power Finance Corporation Limited),” said PFC in a regulatory filing to the stock exchanges.
PFC Consulting Limited, a wholly owned subsidiary of Power Finance Corporation, has been nominated as the ‘bid process coordinator’ for selection of developer through tariff based competitive bidding for the Independent Transmission Projects (ITPs) by the power ministry.
As per the provisions of tariff based competitive bidding guidelines issued by the power ministry, the bid process coordinator has to prepare the project profile and initiate the process of land acquisition and forest clearance, if required.
‘’For these activities, a SPV is required to be incorporated which will take up various preparatory activities of the transmission projects e.g. survey and preparation of report, initialization of the process of acquisition of land and also initiate the process of seeking forest clearance, if required,” said PFC in its statement.
The SPV has to be transferred to the successful bidder selected through international competitive bidding process under tariff based competitive bidding guidelines for transmission service issued by the power ministry.
On June 20, shares of PFC opened at ₹197.30 and touched an intra-day high of ₹204.50 and a low of ₹196.55 during the session. The company commands a market capitalisation of ₹53,884.07 crore, according to BSE.
PFC reported a consolidated net profit of ₹4,676.7 crore in the fourth quarter of FY23. The Q4 PAT registered a growth of 45.8 per cent when compared to a profit of ₹3,205.8 crore recorded in Q4FY22. In the preceding quarter, the profit was ₹3,860.25 crore.
However, the company’s consolidated revenue climbed by a single-digit 6.4 per cent to ₹20,060.86 crore in Q4FY23 compared to ₹18,853.18 crore in Q4 of the previous fiscal. In December 2023 quarter, revenue was at ₹19,639.14 crore. On June 20, shares of PFC settled 3.75 per cent higher at ₹204.10 apiece on the BSE.
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Updated: 20 Jun 2023, 03:53 PM IST
