Power Finance Corporation Limited (PFC), a government-owned entity, has announced a significant development in Maharashtra's power transmission sector. PFC Consulting Limited (PFCCL), a wholly-owned subsidiary of PFC, has incorporated a new Special Purpose Vehicle (SPV) named Raigad Power Transmission Limited.

Project Details

The newly formed SPV is set to develop a crucial transmission system in Maharashtra's Raigad district. Here are the key details of the project:

Role of Maharashtra State Electricity Transmission Company Limited (MSETCL)

MSETCL has appointed PFCCL as the Bid Process Coordinator (BPC) for this project. The appointment was made through a Letter of Intent (LOI) dated August 14, 2025. PFCCL's role as BPC involves:

1. Selecting a Bidder as the Transmission Service Provider (TSP)
2. Establishing the transmission system through a Tariff-Based Competitive Bidding Process

SPV's Preparatory Activities

Raigad Power Transmission Limited, as the SPV, will undertake several crucial preparatory activities for the transmission project, including:

• Conducting surveys and preparing reports
• Initiating the process of land acquisition
• Seeking forest clearance, if required

Future Transfer of SPV

It's important to note that this SPV is not a permanent subsidiary of PFCCL. After the completion of the bidding process, Raigad Power Transmission Limited will be transferred to the successful bidder. This transfer aligns with the Tariff Based Competitive Bidding Guidelines for Transmission Service issued by the Ministry of Power.

Significance of the Project

This development marks a significant step in enhancing Maharashtra's power transmission infrastructure. The establishment of a 765/400/220 kV transmission system at Khandalgaon is expected to improve the reliability and capacity of the state's power grid, potentially benefiting both industrial and residential consumers in the Raigad district and beyond.

The incorporation of Raigad Power Transmission Limited demonstrates PFC's commitment to facilitating the development of crucial power infrastructure projects in India. By creating this SPV, PFC is ensuring that necessary groundwork is laid for the successful implementation of this important transmission project in Maharashtra.

Power Finance Corporation (PFC), a leading player in the Indian financial sector, has reported robust financial performance for the first half of the fiscal year. The company's consolidated profit after tax surged by 17% year-on-year to Rs 16,816 crores, showcasing strong growth and financial stability.

Key Financial Highlights

PFC's financial results demonstrate significant improvements across various metrics:

Dividend Announcement

The board of directors has declared an interim dividend of Rs 3.65 per share. This brings the cumulative interim dividend for the current fiscal year to Rs 7.35 per share, reflecting the company's commitment to shareholder returns.

Operational Performance

PFC maintained strong operational metrics in the first half:

• Yield: 9.98%
• Cost of Funds: 7.43%
• Spread: 2.55%
• Net Interest Margin (NIM): 3.62%

The company's Capital to Risk-weighted Assets Ratio (CRAR) stood at a healthy 21.62%, with Tier 1 capital at 19.89%, indicating a strong capital position.

Strategic Developments

PFC has entered its first cross-border financing deal in Bhutan, worth Rs 4,800.00 crores for a 600MW hydro power project. This move signifies the company's expansion into international markets and diversification of its portfolio.

Challenges and Outlook

Despite the overall positive performance, PFC faced foreign exchange losses of Rs 1,100.00 crores in the first half due to Euro appreciation against USD by approximately 8%. However, the company maintains its loan book growth guidance of 10-11% for the current fiscal year, indicating confidence in its future performance.

The improvement in asset quality, with gross NPA declining to 1.87% from 2.71% in the previous year's first half and net NPA reaching a 10-year low of 0.37%, underscores PFC's effective risk management strategies.

As Power Finance Corporation continues to strengthen its position in the power sector financing space, its robust financial performance and strategic initiatives position it well for sustained growth in the coming quarters.