PTC India Financial Services Limited (PFS), a subsidiary of PTC India Limited in which it holds 60% stake, is planning to set up a renewable energy fund that will extend equity and debt financing for non-conventional energy projects across wind, biomass and solar segments.
“The process for launching the fund is at a preliminary stage. The board has already given an in-principle approval for it,” an official familiar with the development told Express.
While the corpus of the fund could not be ascertained, PFS may look at roping strategic domestic and global investors for the fund.
PFS’ move to set up a fund for financing renewable energy projects follows strong interest shown by global marquee private equity firms and overseas investors in India’s clean energy market. In fact, Goldman Sachs and Macquarie Group are two major shareholders in PFS.
While lifting of subsidies by many European governments to renewable energy companies is one of the many factors, the significant growth opportunities that the Indian renewable energy market presents is a major factor.
According to government estimates, the energy requirement in the country is projected to grow at a CAGR of 7.5% during 12th Plan period reaching from 9,68,658 Giga Watt hour (Gwh) in FY 2012 to 13,92,065 Gwh by FY 2017.
Besides equity investments and lending for power projects, PFS also undertakes carbon financing transactions as well as provides project advisory services.