Power Finance arm incorporates SPV; shares erase morning gains

Power Finance shares gained one percent in early trade, but erased all its morning wins on November 22. The power financier’s subsidiary PFC Consulting Limited incorporated a new special purpose vehicle (SPV) for developing an intra-state transmission system.

PFC Consulting has been nominated as the ‘Bid Process Coordinator’ (BPC). The firm will select developers through tariff-based competitive bidding for the Independent Transmission Projects (ITPs) by the Ministry of Power.

As of 10.26 am, shares of the company were trading flat at Rs 319.5 on the NSE.

The SPV, Ramakanali B Panagarh Transmission, has been incorporated for developing an intra-state transmission system consisting of “400/220/132/33 KV SS at Ramakanali-B along with associated transmission lines and 220/33 KV SS at Panagarh along with associated transmission line.”

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According to the provisions of tariff-based competitive bidding, as the BPC, PFC Consulting will have to prepare a profile of the project and initiate the process of land acquisition and forest clearance, if required.

“For these activities, a Special Purpose Vehicle (SPV) is required to be incorporated which will take up various preparatory activities of the transmission projects e.g. survey and preparation of report, initialization of the process of land and also initiate the process of seeking forest clearance, if required,” said Power Finance Corporation, in a regulatory filing.

The SPV will be transferred to the successful bidder, following the completion of the bidding process. The successful bidder will then develop the transmission scheme.

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