Power Finance Corporation has completed the transfer of two wholly owned subsidiaries of its subsidiary PFC Consulting Limited. The transactions were finalized on September 28, 2026.

Transaction details

The divestments involve distinct buyers and specific transmission infrastructure projects. The following table summarises the key details of each sale:

The combined consideration from the two sales amounts to proceeds from two separate deals. Latur REZ Transmission Limited was established for the development of "Establishment of 400/220/132 kV AIS Latur" and was sold to Montecarlo Energy Limited for ₹3.72 crore. Raigad Power Transmission Limited, established for the development of "Establishment of 765/400/220 kV AIS Kandalgaon (Dist. Raigad)", was transferred to Apraava Energy Private Limited for ₹7.41 crore.

Regulatory and financial disclosures

Both subsidiaries contributed negligible turnover, revenue, or income and net worth during the last financial year. The consideration received is as per the Share Purchase Agreement. Neither transaction falls within the purview of related party transactions, and neither buyer belongs to the promoter or promoter group.

The proposal for sale and transfer is not in the nature of a slump sale. The consideration for the sale and transfer of these Special Purpose Vehicles (SPVs) is determined in accordance with guidelines issued by the Ministry of Power, Government of India.

Power Finance Corporation has incorporated Malegaon Power Transmission Limited, a Special Purpose Vehicle (SPV), to facilitate the development of a 400/220 kV transmission project in Nashik district. The SPV is a wholly owned subsidiary of PFC Consulting Limited (PFCCL).

Strategic Role of the Special Purpose Vehicle

PFCCL, a wholly owned subsidiary of PFC, serves as the Bid Process Coordinator (BPC) for Independent Transmission Projects (ITPs) under the Ministry of Power. The incorporation of this SPV aligns with tariff-based competitive bidding guidelines, which mandate the BPC to prepare project profiles and initiate preparatory activities before developer selection.

The SPV will undertake critical pre-development tasks, including:

• Survey and preparation of technical reports.
• Initiation of land acquisition processes.
• Seeking forest clearance, if required.

Project Specifics and Governance

The State Empowered Committee on Transmission nominated PFCCL as the BPC during its 10th meeting held on May 12, 2026. This nomination received approval from the Government of Maharashtra via a resolution dated July 10, 2026. The specific infrastructure to be developed is the 400/220 kV Malegaon {Saundane} Substation.

Post-Bidding Transfer Mechanism

The operational lifecycle of the SPV is temporary and tied strictly to the bidding process. Once the successful bidder is selected through International Competitive Bidding, the SPV will be transferred to them. The selected developer will then assume responsibility for the actual construction and development of the transmission scheme.

What the Numbers Show

The establishment of this SPV highlights a structural dependency in India's transmission sector where financial institutions like PFC act as facilitators rather than direct developers. By incorporating a separate entity solely for land acquisition and surveying, PFC isolates the regulatory and logistical risks associated with pre-construction phases from its core lending balance sheet. This mechanism ensures that the complex process of securing land rights and clearances is managed by a dedicated vehicle, which is subsequently handed over to the private developer who bears the execution risk.