Power Finance Corporation (PFC) has sealed an agreement on Wednesday, as a Memorandum of Understanding (MoU), with the government of Gujarat. This MoU serves the purpose of extending extensive financial support amounting to Rs 25,000 crore towards the state’s various projects related to power generation, transmission, and distribution.
Power Finance Corporation (PFC) is an Indian financial institution working in the power sector’s funding and development. Established in 1986, PFC is focused on enhancing the energy ecosystem, offering financial products, services, and consultancy across the value chain. It specializes in financing power projects, facilitating their implementation, and fostering sustainable growth. PFC supports various renewable and conventional energy initiatives, emphasizing innovation and efficiency. With a strong vision to strengthen the nation’s power infrastructure, PFC continues to play a crucial role in driving India’s energy landscape, ensuring reliable electricity access, and fostering economic development through its strategic investments and financial expertise.
In Gandhinagar, a signed agreement places its central emphasis on delivering substantial financial backing totaling ₹25,000 crore towards the realization of the state’s ambitious projects concerning the development, enhancement, and facilitation of power generation, transmission, and distribution infrastructures. “Under the terms of the MoU, the envisaged financial assistance stands at an impressive ₹25,000 crore, dedicated to powering up various projects across Gujarat,” the Ministry of Power reported.
The Memorandum of Understanding (MoU) sets the cornerstone for a robust and purposeful partnership geared towards strengthening collaborative efforts spearheaded by pivotal organizations like Gujarat Urja Vikas Nigam Ltd (GUVNL), Gujarat State Electricity Corporation Ltd (GSECL), Gujarat Energy Transmission Corporation Ltd (GETCO), Dakshin Gujarat Vij Company Ltd (DGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), and Uttar Gujarat Vij Company Ltd (UGVCL). This agreement aims to fortify initiatives and endeavors collectively undertaken by these entities, establishing a framework that fosters coordinated actions and mutual support among them.
The imminent assistance provided by PFC is strategically positioned to cater to crucial financial requirements, encompassing essential long-term debt, pivotal to ensuring the effective implementation of these multifaceted projects. Demonstrating PFC’s unwavering dedication to enhancing Gujarat’s power infrastructure, the Memorandum of Understanding (MoU) stands as a testament not only to a substantial financial commitment but also mirrors a mutual aspiration towards fostering sustainable and dependable energy sources within the region. Apart from the injection of capital, this partnership is anticipated to foster the creation of job opportunities, paving the way for approximately 10,000 employment positions within the region of Gujarat. “Apart from facilitating the expansion of power infrastructure, the MoU shall inter-alia also help create employment generation to the tune of 10,000 in the state of Gujarat,” the ministry added.
The collaborative partnership between the Power Finance Corporation (PFC) and the Gujarat government is anticipated to serve as a pivotal force, driving substantial and far-reaching advancements aimed at instigating a paradigm shift towards enhanced energy sustainability and efficacy. The closing valuation of Power Finance Corporation Ltd.’s shares on the Bombay Stock Exchange (BSE) stood at ₹393.05, marking an increase of ₹2.95, equivalent to a rise of 0.76%.