Power Finance Corporation Limited (PFC) has announced the incorporation of four wholly owned subsidiaries under its subsidiary, PFC Consulting Limited (PFCCL). These subsidiaries are established as Special Purpose Vehicle (SPV) companies to facilitate the development of Independent Transmission Projects (ITPs) through tariff-based competitive bidding.
The newly formed subsidiaries are Babai Transmission Limited, Bikaner Transmission Limited, Humnabad Power Transmission Limited, and Hebbani Power Transmission Limited. Each of these SPVs is tasked with specific transmission systems in different regions. Babai Transmission Limited will focus on the 765kV GSS Babai transmission system, while Bikaner Transmission Limited will handle the 765kV GSS Bikaner (Pugal) transmission system. Humnabad Power Transmission Limited and Hebbani Power Transmission Limited are responsible for the 400kV transmission systems in Bidar and Mandya districts, respectively.
The establishment of these SPVs follows the recommendations and approvals from respective state committees and government departments. For instance, the Rajasthan Rajya Vidyut Prasaran Nigam Limited (RRVPNL) and the Government of Rajasthan have approved PFCCL as the Bid Process Coordinator (BPC) for the Babai and Bikaner transmission systems. Similarly, the Karnataka Power Transmission Corporation Limited (KPTCL) and the Government of Karnataka have nominated PFCCL for the Humnabad and Hebbani projects.
As per the guidelines issued by the Ministry of Power, the BPC is responsible for preparing the project profile and initiating processes such as land acquisition and forest clearance, if necessary. The SPVs will undertake these preparatory activities, including surveys and report preparation. Once the bidding process is completed, the SPVs will be transferred to the successful bidder, who will then develop the project.
This strategic move is part of PFC’s broader initiative to streamline the development of transmission infrastructure across India, leveraging competitive bidding to ensure efficiency and cost-effectiveness.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).