PFC Divests Key Transmission SPVs, Fuels Power Infra Growth

Hey there, finance enthusiasts! 👋 Let’s dive into some interesting news from the power sector. Power Finance Corporation (PFC), a major player in India’s energy landscape, recently announced a strategic move that’s all about accelerating power infrastructure development.

PFC has successfully transferred two of its wholly-owned subsidiaries, Raghanesda RE Transmission Limited and NER Expansion Transmission Limited, to new owners. These entities were initially under PFC Consulting Limited, which itself is a wholly-owned subsidiary of PFC.

Think of these subsidiaries as specialized project vehicles, often called Special Purpose Vehicles (SPVs). They were set up for very specific, crucial projects:

• Raghanesda RE Transmission Limited was tasked with developing a transmission system to evacuate a massive 3 GW of renewable energy from Gujarat’s Raghanesda area.
• NER Expansion Transmission Limited was focused on expanding the transmission network in the North-Eastern Region under the NERES-XXV Part-A scheme.

So, what’s the big deal? Well, PFC’s role often involves kickstarting vital power projects, nurturing them through initial development, and then bringing in specialized developers to take them to completion and operation. This strategy allows PFC to recycle capital and ensure that these critical infrastructure projects move forward efficiently. It’s a smart way to facilitate growth in the power sector without holding onto operational assets long-term.

The transfer, which was completed on July 23, 2025, saw Raghanesda RE Transmission Limited go to Dineshchandra R. Agrawal Infracon Private Limited, while Resonia Limited acquired NER Expansion Transmission Limited. The transactions involved considerations of Rs. 19.14 crore and Rs. 12.90 crore respectively.

It’s worth noting that these subsidiaries had a ’negligible’ contribution to PFC’s overall turnover or net worth. This makes perfect sense, as SPVs like these are typically in the development phase and haven’t started generating significant revenue yet. The company also clarified that these transfers were not related-party transactions and the buyers are not part of PFC’s promoter group, ensuring a fair and transparent process guided by Ministry of Power guidelines.

This move underscores PFC’s commitment to fostering robust power infrastructure across India, acting as a catalyst for development and ensuring that vital projects find the right hands to flourish. It’s a win-win for project execution and capital efficiency! 💡

source: Corporate Announcement

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