State-owned PFC Ltd, India’s leading NBFC dedicated to the power sector, has raised it’s borrowing target for the current financial year 2020-21 (Apr-Mar) by Rs 28,000 crore or 31% to Rs 1,18,000 crore from Rs 90,000 crore earlier.
The borrowing plan for current FY 2020-21 has been revised from Rs 90,000 crore to Rs 1,18,000 crore to accommodate the moratorium granted to borrowers as per RBI guidelines, said PFC.
According to a notice from PFC to stock exchanges, it plans to raise a maximum of Rs 83,000 crore rupees from Long Term Borrowing, Rs 15,000 crore rupees from Long Term Foreign Currency Borrowing, Rs 5000 crore from Short Term Borrowings and Rs 15,000 crore from Commercial Papers.
PFC does not see any challenges in raising the borrowing amount, which is being used to lend for various power sector projects in the country. Till date, PFC along with its subsidiary REC has sanctioned loans totalling 1.18 lakh crore rupees to DISCOMs in order to address their liquidity crisis during the COVID period.
According to a spokesperson of the company, “In view of the liquidity position in the market, PFC’s highest credit rating, track record and financial strength, we don’t foresee any challenge to meet the targets and maintain growth momentum, despite the slowdown in the power sector due to Covid situation”.
PFC plans to step up funding into financing power-related businesses; forward and backward linkage with power sector. PFC will also be looking into financing equipment manufacturing along with financing manufacturing of electric vehicles and setting up of charging infrastructure and smart grid projects.