Tata Capital, PFC to set up PE fund
Power Finance Corporation (PFC) has said it would set up a $1-billion private equity (PE) fund in a joint venture with Tata Capital to invest in equities of private power projects.
Tata Capital will hold 51 per cent equity in the joint venture, while the state-run PFC to own the balance 49 per cent. “PFC is already in the process of finalising the terms of the JV pact and the fund is expected to become operational in the next six-nine months,” said PFC Chairman & Managing Director Satnam Singh on the sidelines of a press conference to launch the company’s tax free bonds.
The company’s target for sanctions this fiscal stood at Rs 45,140 crore, of which it has sanctioned Rs 41,732 crore. Out of Rs 40,000 crore distribution target it has disbursed Rs 17,555 crore as on September 2012, Singh said.
PFC’s outstanding sanction (order book) stands at Rs 1.68 lakh crore, which will help the company disburse the remaining Rs 23,000 crore, he pointed out.