PTC India Financial Services (PFS) has approved loans of more than R1,000 crore to power projects. Most of the projects arre related to renewable energy.
At its board meeting, PFS approved project lending of a little over R1,000 crore to compaies with aproven track record, a source said.
Refusing to divulge individual company details, the source said that bulk of the projects were in the renewable energy space.
Loans of R540 crore have been sanctioned for solar projects and R265 crore for wind projects.
Hydroelectric projects have got R140 crore from PFS and capital thermal power plants another R150 crore.
In one of the projects in the solar space, PFS is the sole lender and is lending R300 crore. The 50-mega watt (MW) project in Madhya Pradesh is a joint venture between a leading public sector company, NEEPCO and a private player chosen after bidding.
The project is likely to come up by January 2015. PFS is emerging as first port of call for power projects in the country, including renewable energy. This is primarilydue to their extensive knowledge of the sector, thorough due diligence and then quick sanction and disbursal of loans, said an official with a company that has borrowed from PFS in the past.
With NDA governments focus on renewable energy, a number of projects are beginning to take shape or are in the process of being constructed. There is keen interest in renewable energy projects from both public and private sector companies. India, with abundant sunshine through the year, a long coastline and abundant water resources, is ideal for renewable energy.
While bulk of Indias current power generation is coal-based, which is both polluting and a finite source, renewable energy promises to significantly cut down pollution levels. Companies are already queueing up at banks and power sector specific lending companies like PFS to take loans.