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.

Power Finance Corporation Limited (PFC), a leading player in India's power sector financing, has announced a significant move in bolstering the country's renewable energy infrastructure. The company has incorporated TUMKUR II RE TRANSMISSION LIMITED as a wholly-owned subsidiary of PFC Consulting Limited (PFCCL), which is itself a wholly-owned subsidiary of PFC.

Purpose and Scope

The newly formed Special Purpose Vehicle (SPV) is tasked with developing a crucial transmission system strengthening project at Tumkur-II. This project aims to integrate an additional renewable energy potential of 1.50 GW, marking a substantial step towards enhancing India's green energy capabilities.

Government Mandate and Bidding Process

The incorporation follows a directive from the Ministry of Power (MoP), which issued a Gazette Notification (No. CG-DL-E-21082025-265554) dated August 19, 2025. This notification appointed PFC Consulting Limited as the Bid Process Coordinator (BPC) for selecting a Transmission Service Provider (TSP) through a Tariff Based Competitive Bidding Process.

Role of the SPV

TUMKUR II RE TRANSMISSION LIMITED will play a crucial role in the initial stages of the project:

1. Conducting surveys and preparing reports
2. Initiating land acquisition processes
3. Seeking forest clearances, if required

These preparatory activities are essential for laying the groundwork for the transmission project.

Future Transfer and Development

Upon completion of the competitive bidding process, the SPV will be transferred to the successful bidder. This entity will then be responsible for developing and implementing the transmission project, ensuring the efficient integration of renewable energy into the grid.

Significance for Renewable Energy Sector

This development underscores PFC's commitment to facilitating the growth of India's renewable energy sector. By strengthening the transmission infrastructure, the project aims to accommodate the increasing influx of green energy, supporting the country's sustainable development goals.

The incorporation of TUMKUR II RE TRANSMISSION LIMITED represents a strategic move in enhancing India's power transmission capabilities, particularly in the renewable energy domain. As the project progresses, it is expected to play a vital role in the nation's transition towards a more sustainable and robust energy landscape.