Power Finance Corporation (PFC), the country’s largest power sector financier, is considering a cut in lending rates.
The navratna PSU’s lending rates, which average 11.50-11.75% now, could decrease by 25 basis points, MK Goel, director (institutional development and administration), said. He did not say when the rate cut would be made.
PFC is targeting disbursals of around Rs 24,000 crore in2009-10 against Rs 21,000 crore in 2008-09. Around Rs 15,000-20,000 crore of this could be raised from the market mainly in the form of bonds, but Goel declined to confirm on this point.
PFC, which is working with the ministry of power and the Central Electricity Authority (CEA) to facilitate development of several ultra mega power projects (UMPPs) under the tariff-based competitive bidding route, is awaiting the request for qualification (RFQ) for three UMPPs.
These are the Bedabahal UMPP in Orissa, Cheyyur in Tamil Nadu and Akaltara in Chhattisgarh.
PFC will be the nodal agency for these three UMPPs and is currently following up with the respective state governments with regard to the RFQ, Goel said.
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