PTC India Approved $134 Million in Funds for 10 Power Projects in First Half of Fiscal Year

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Researched by Industrial Info Resources (Sugar Land, Texas)--PTC India Financial Services Limited (PFS), the investment arm of PTC India Limited (BSE:532524) (New Delhi), has approved funds of about $133.5 million for 10 power projects in the first half of the fiscal year. The amount cleared is higher than the corresponding figures for last year, which stood at $33 million. PFS, a joint venture of PTC, Goldman Sachs Strategic Investments Limited (New York), and Macquarie India Holdings Limited (Mumbai), has extended financial assistance worth $324.2 million since it started commercial operations in 2007.

The company has provided both short- and long-term equity and debt financing for several renewable and non-conventional power projects such as solar, wind, biomass and coal-based projects, having a combined capacity of more than 7,000 MW of power. In addition, the company has invested in other sectors, including power trading; electrical equipment and turbine manufacturing; development of fuel sources and storage; and transmission infrastructure.

PFS' investments in renewable energy ventures mostly include equity participation varying between 26% and 37%. About 125 MW of renewable power projects, including 22 MW of biomass, 100 MW of wind and biodiesel, and 3 MW of solar power projects are under way in the states of Maharashtra and Haryana and are due to go online this fiscal year. Apart from these ventures, PFS owns up to 26% in a special purpose vehicle (SPV) that funds renewable energy ventures across India, with a view to develop 500 MW of projects.

As for investments in non-conventional power sources, PFS is involved in both equity and debt financing. The combined capacity of equity-funded projects in Tamil Nadu, Andhra Pradesh and Orissa, scheduled for commissioning through 2009-12, is estimated at 2,479 MW. About 3,236 MW of projects funded through debt instruments are in the states of Maharashtra, Haryana, Orissa, Chhattisgarh and Jharkhand. While funds for three projects already have been disbursed, most of the others are expected to achieve financial closure by the end of this year.

PFS was established in 2006, with PTC India holding a 60% majority stake, and Goldman Sachs and Macquarie India each holding 20% stakes. PFS provides a range of financial services for ventures in the energy value chain, including expert guidance and advice, risk management solutions, and capital investments. It is also involved in sourcing funds from third-party investors for deployment in energy ventures. PFS holds a 26% share in Indian Energy Exchange, which is the first power exchange in the country.

PTC India, earlier known as Power Trading Corporation of India Limited, is a major player in the country's power-trading sector, enjoying a 50% market share of the sector. An initiative of the Indian Government, PTC India is actively involved in power-trading activities across the border with Nepal, as well as Bhutan. Apart from long-term power purchase agreements with major energy ventures in the country, PTC India pitches in to service short-term energy requirements of states during peak demand. The company is also exploring opportunities in the clean energy sector, fuel trade, and investments in energy assets.

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