Power Finance Corporation completed the transfer of two wholly owned subsidiaries on August 3, 2026, divesting Ananthpuram Transmission Limited to Apraava Energy Private Limited and Krishnagiri REZ Transmission Limited to Power Grid Corporation of India Limited. The transactions generated a combined consideration of ₹39,43,78,090, marking the exit of the lender's consulting arm from specific renewable energy zone (REZ) transmission infrastructure projects. These moves streamline the corporate structure of PFC Consulting Limited, a wholly owned subsidiary of the central financial institution, by handing over operational execution to specialized entities.

The sale agreements were executed in accordance with guidelines issued by the Ministry of Power, Government of India. Management confirmed that neither transaction constitutes a related party deal nor a slump sale. Both buyers operate independently of the promoter group, ensuring arm's length valuation principles were applied during the bidding process.

Ananthpuram Transmission Limited was established specifically for the development of the "Transmission System for Integration of Ananthpuram-III PS REZ Phase-I (3GW)." The company transferred this special purpose vehicle (SPV) to Apraava Energy Private Limited for a consideration of ₹19,61,75,336. This transfer shifts the development responsibility for the 3GW solar integration project to a private energy developer.

Krishnagiri REZ Transmission Limited, created for the "Transmission System for integration of Krishnagiri REZ Phase-I," was sold to Power Grid Corporation of India Limited for ₹19,82,02,754. This transaction places the transmission infrastructure under the country's primary power grid operator, aligning with broader national grid integration strategies.

Transaction Details

The following table summarizes the key parameters of both divestiture transactions:

Financial impact from these units was described as negligible in the last financial year, indicating minimal revenue or net worth contribution to the listed entity prior to the transfer. The process for sale and transfer was formally concluded on the date of execution.

Strategic Implications

The divestiture reflects a shift in strategy where Power Finance Corporation focuses on financing rather than direct project development ownership. By transferring these SPVs to specialized operators like Power Grid Corporation and private developers, the company reduces balance sheet exposure to capital-intensive infrastructure projects while maintaining its role as a key financier in the energy sector.

Power Finance Corporation Limited (PFC) has incorporated Benchigere Transmission Limited as a wholly owned subsidiary through its arm, PFC Consulting Limited. The new entity serves as a special purpose vehicle (SPV) designed to execute preparatory work for the 400kV Benchigere transmission system in Tumakuru District, Karnataka, ahead of its transfer to a private developer selected through competitive bidding.

The incorporation enables PFC Consulting Limited, nominated as the Bid Process Coordinator (BPC) by the Ministry of Power, to fulfill regulatory requirements under the Tariff Based Competitive Bidding Guidelines. As BPC, the entity must prepare the project profile and initiate critical groundwork, including land acquisition and forest clearance processes, which cannot be undertaken by the coordinating agency directly without a dedicated corporate structure.

Project Structure and Regulatory Approvals

The State Empowered Committee on Transmission ratified the nomination of PFC Consulting Limited as the BPC during its 07th meeting held on August 29, 2025. This action was subsequently approved by the Energy Department via Government Order No. Energy 73 PPT 2024, issued from Bengaluru on October 18, 2025. The Karnataka Power Transmission Corporation Limited (KPTCL) had initially recommended the appointment, facilitating the state-level consensus required for the project's progression.

Operational Scope of the SPV

Benchigere Transmission Limited is mandated to undertake specific preparatory activities essential for the Independent Transmission Project (ITP). These responsibilities include conducting surveys, preparing technical reports, and initiating the legal processes for land acquisition. Additionally, the SPV must seek necessary forest clearances if the transmission route intersects protected areas. Upon completion of these preparatory phases, the SPV will be transferred to the successful bidder identified through the International Competitive Bidding Process.

What the Numbers Show

The establishment of this SPV highlights a structured approach by public sector undertakings to de-risk infrastructure projects before private participation. By isolating the preparatory liabilities and regulatory compliance tasks within a dedicated vehicle like Benchigere Transmission Limited, PFC Consulting Limited ensures that the core bidding process remains focused on tariff competitiveness rather than preliminary administrative hurdles. This model aligns with the Ministry of Power’s guidelines, ensuring that the successful bidder inherits a project with cleared land and environmental approvals, thereby accelerating construction timelines once the transfer is complete.