Power Finance Corporation Ltd (PFC) will decide in a month on funding overseas energy assets. The infrastructure financier has completed its internal preliminary study on foraying into the new business portfolio.
“Board will decide in one-month's time. We do not want to fund projects just like that. Only if these projects can help electricity generation in India, we would be interested,” Mr Satnam Singh, Chairman and Managing Director, PFC, told Business Line .
Companies such as Lanco Infratech, GVK Industries and Videocon Industries have held preliminary talks with PFC, Mr Singh said. These companies are looking to raise debt to fund development of their assets acquired overseas.
If the board gives its go-ahead, PFC would create a business unit within the company to work on such projects, Mr Singh added.
Disbursement
When asked what percentage of PFC's total disbursement would be earmarked for overseas projects, Mr Singh said it's too early to comment unless PFC zeroed in on some project.
GVK acquired Hancock Coal in Australia in 2011. Similarly, Lanco Infratech bought Griffin Coal in 2010 that has mines in Western Australia. Videocon Industries is in exploration of hydrocarbon blocks in Mozambique in joint venture with Bharat Petroleum Corporation Ltd (BPCL).
Mr Singh said that PFC is not keen on buying equity in these projects and would only consider giving loans. However, PFC would finance only if the coal or gas is brought back to India for generating power.