Power Finance Corporation (PFC), a leading player in the Indian power sector, has taken a significant step towards enhancing power transmission infrastructure by incorporating a new Special Purpose Vehicle (SPV). The company announced the establishment of 'South Kalamb Power Transmission Limited' as a wholly-owned subsidiary of PFC Consulting Limited (PFCCL), which is itself a wholly-owned subsidiary of PFC.

Purpose of the New SPV

The newly formed SPV, South Kalamb Power Transmission Limited, has been created for a specific transmission scheme development. According to the company's disclosure, the SPV will focus on the "Network Expansion Scheme for drawal of power at South Kalamb S/s: Part A."

Ministry of Power's Role

The Ministry of Power (MoP) has played a crucial role in this development. Through a Gazette Notification (No. CG-DL-E-21082025-265554) dated August 19, 2025, the Ministry appointed PFCCL as the Bid Process Coordinator (BPC). This appointment is aimed at selecting a Transmission Service Provider (TSP) to establish the aforementioned transmission system through a Tariff Based Competitive Bidding Process.

SPV's Responsibilities

The newly incorporated SPV will undertake various preparatory activities essential for the transmission project, including:

1. Conducting surveys and preparing reports
2. Initiating the process of land acquisition
3. Seeking forest clearance, if required

These activities align with the provisions of tariff-based competitive bidding guidelines issued by the Ministry of Power.

Future Transfer of SPV

It's important to note that the SPV is not intended to be a permanent subsidiary of PFCCL. After the completion of the bidding process, South Kalamb Power Transmission Limited will be transferred to the successful bidder. This bidder, selected through an international competitive bidding process, will then be responsible for developing the project further.

Implications for the Power Sector

This move by PFC demonstrates the company's commitment to facilitating the development of power transmission infrastructure in India. By creating specialized SPVs for specific projects, PFC is streamlining the process of project development and bidding, potentially leading to more efficient and timely execution of critical power transmission schemes.

The establishment of South Kalamb Power Transmission Limited is expected to contribute to the expansion and enhancement of India's power transmission network, particularly in the South Kalamb area. This development aligns with the broader goals of improving power distribution and accessibility across the country.

As the power sector continues to evolve, such strategic initiatives by key players like PFC are likely to play a crucial role in meeting India's growing energy demands and strengthening its power infrastructure.

Power Finance Corporation (PFC), a state-owned financial institution, has entered into a significant loan agreement with Khorlochhu Hydro Power Ltd. The hydro power company has successfully secured a substantial loan worth ₹4,829.00 crore, marking a notable development in the power sector.

Loan Agreement Details

The loan agreement between Khorlochhu Hydro Power Ltd and Power Finance Corporation is valued at ₹4,829.00 crore, representing a major financial commitment. This substantial funding is likely to play a crucial role in the company's operations and potential expansion plans.

Implications for Khorlochhu Hydro Power

This financial arrangement could have several implications for Khorlochhu Hydro Power Ltd:

1. Project Financing: The loan may be utilized for financing ongoing or upcoming hydro power projects, potentially boosting the company's power generation capacity.

2. Infrastructure Development: Funds could be allocated towards improving existing infrastructure or developing new facilities to enhance operational efficiency.

3. Financial Stability: The loan agreement with a reputable state-owned institution like PFC may provide Khorlochhu Hydro Power with increased financial stability and credibility in the market.

Power Finance Corporation's Role

Power Finance Corporation, as a leading state-owned financial institution, continues to play a vital role in supporting India's power sector. This loan agreement demonstrates PFC's ongoing commitment to financing key players in the hydro power industry.

The successful negotiation of this substantial loan highlights the confidence that Power Finance Corporation has in Khorlochhu Hydro Power Ltd's business model and future prospects.

As the energy landscape continues to evolve, with an increasing focus on renewable sources, this financial backing for a hydro power company underscores the importance of diverse energy solutions in India's power sector.