Power Finance Corporation Limited has announced the incorporation of a new Special Purpose Vehicle (SPV), Fatehgarh II Transmission Limited. This entity was formed by its subsidiary, PFC Consulting Limited, to facilitate the installation of two synchronous condenser units at the 765/400/220 kV Fatehgarh-II power station. The project, awarded through a tariff-based competitive bidding process, is part of a larger effort to enhance transmission infrastructure as recommended by the National Committee on Transmission.
Strategic Infrastructure Development
To support the development of critical energy infrastructure, Power Finance Corporation Limited (PFC) has successfully incorporated Fatehgarh II Transmission Limited. This SPV will function as a wholly owned subsidiary of PFC Consulting Limited (PFCCL), which serves as the Bid Process Coordinator for the project.
Project Scope and Implementation
The core objective of this new entity is the installation of two synchronous condenser units at the 765/400/220 kV Fatehgarh-II power station. This project is a key component of India’s power transmission roadmap, aimed at grid stability and efficiency. Following the preparatory phase—which includes land acquisition, forest clearance, and project reporting—the SPV will be transferred to a successful bidder identified through an international competitive bidding process.
Regulatory Foundation
The establishment of this SPV follows recommendations from the National Committee on Transmission during its 33rd meeting held on September 16, 2025. The scheme was subsequently notified in the Official Gazette on October 30, 2025, under the Tariff Based Competitive Bidding (TBCB) framework. By utilizing the SPV model, PFCCL ensures the project is project-ready before its formal handover to the selected developer.
Source: BSE
