PFS, PFC Green to jointly finance renewable energy projects

New Delhi: In order to cut down on time needed for financial closure of renewable energy projects, PTC India Financial Services and PFC Green Energy Wednesday signed an initial agreement for facilitating joint financing of those plants.

PTC India Financial Services (PFS) is promoted by PTC India and PFC Green Energy is a wholly owned subsidiary of Power Finance Corporation.

As per the initial pact, both the companies have agreed to provide a single window to borrowers developing renewable energy projects under consortium financing to achieve speedy financial closure and avoid duplication of work, PFS said in a statement.

The agreement aims to boost the implementation and act as a catalyst to fast track renewable energy projects in the country, it added.

According to official estimates, the total installed capacity of renewable energy resources in the country is 32,424 MW as of July 2014 or 13 per cent of the total potential of 2,45,000 MW.

"We are confident that given our expertise and robust appraisal systems, we will be able to quickly provide funding to quality projects backed by credible promoters," R M Malla, Managing Director & CEO, PFS said

The initial pact between the two firms is in line with the targets set by the Ministry of New and Renewable Energy, which is aiming for a capacity addition of 30,000 MW during the 12th Plan period (2012-2017) from various renewable energy sources.

This comprises 15,000 MW from wind, 10,000 MW from solar, 2,100 MW from small hydro and the balance from biomass.