Power Finance Corporation Ltd. (PFC) has announced the incorporation of a wholly-owned subsidiary, Northern Region Power Transmission Limited. This Special Purpose Vehicle (SPV) has been established to undertake preparatory activities for a significant power transmission scheme in the Northern Region. The SPV will be transferred to the successful bidder selected through the Tariff Based Competitive Bidding (TBCB) process, facilitating project development.
New Subsidiary for Power Transmission
Power Finance Corporation Ltd. (PFC) has successfully incorporated a new wholly-owned subsidiary named Northern Region Power Transmission Limited. This entity has been established as a Special Purpose Vehicle (SPV) to develop a critical power transmission scheme located in the Northern Region Grid. This initiative is crucial for addressing static and dynamic compensation requirements within the grid.
Role in Tariff Based Competitive Bidding
PFC Consulting Limited (PFCCL), another wholly-owned subsidiary of PFC, has been nominated as the ‘Bid Process Coordinator’ (BPC). In this capacity, PFCCL is responsible for selecting a developer through a tariff-based competitive bidding process, overseen by the Ministry of Power, Government of India. The newly incorporated SPV, Northern Region Power Transmission Limited, will manage various preparatory activities, including land acquisition and forest clearance, before being transferred to the successful bidder.
Project Development and Transfer
The establishment of this SPV is a mandated step as per the tariff-based competitive bidding guidelines. The SPV’s role includes conducting surveys, preparing project reports, and initiating land acquisition and forest clearance processes if required. Ultimately, this SPV will be transferred to the bidder who emerges successful through the international competitive bidding process. This strategic move by PFC aims to streamline the development and execution of vital transmission infrastructure projects.
Source: BSE
