Indian Express reported that state run Power Finance Corporation is in talks with GVK and Videocon to fund their coal mine acquisitions overseas on the condition that they bring a majority portion of the coal back to India.

Mr Satnam Singh CMD of PFC also said the company would carve out a separate unit Facilitation Group to finance such coal mine acquisitions. The state run lender may form a subsidiary for such proposals in the future. Mr Singh said that "At present there is no plan to float any such subsidiary, but later we will see.”

The company which is engaged in funding power generation, transmission and distribution projects, plans to raise INR 40,000 crore during the current financial year as part of its resource mobilisation plan.

He said that "Part of the resource mobilisation target of INR 40,000 crore for the current fiscal would come from external commercial borrowings.”

However, did not disclose the loan sanction target for the same period as the company is yet to announce its annual results.

PFC, which is also the nodal agency for the ultra mega power projects in the country, has set up a Special Purpose Vehicle for setting up such a project at Deoghar in Jharkhand.

Source - Indian Express

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