PFC to provide Rs 25,000 cr to Gujarat govt for power projects

Under the terms of the MoU, the envisaged financial assistance to be provided by PFC stands at Rs 25,000 crore, dedicated to power projects across Gujarat
PFC to provide Rs 25,000 cr to Gujarat govt for power projects
PFC to provide Rs 25,000 cr to Gujarat govt for power projects

New Delhi: Power Finance Corporation Ltd (PFC), a Maharatna CPSE and the leading NBFC in the power sector, has signed an MoU with the government of Gujarat in Gandhinagar on Wednesday. The chief objective of this MoU is to provide comprehensive financial backing for the state's power generation, transmission, and distribution projects, said an official statement released by the Ministry of Power.

The MoU has been signed by PFC CMD Parminder Chopra and GUVNL MD Jai Prakash Shivhare.

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MoU to facilitate long-term debt for power projects in Gujarat

Explaining the significance of the MoU, the government said that the MoU will ensure long-term debt for power generation, transmission, and distribution companies for undertaking projects. "The MoU, signed in Gandhinagar, marks a significant step towards bolstering various projects undertaken by Gujarat Urja Vikas Nigam Limited (GUVNL), Gujarat State Electricity Corporation Limited (GSECL), Gujarat Energy Transmission Corporation Ltd (GETCO), Dakshin Gujarat Vij Company Ltd (DGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), and Uttar Gujarat Vij Company Ltd (UGVCL). The collaboration is set to facilitate long-term debt and other critical funding necessities vital for executing these diverse projects," said the statement.

PFC to provide financial assistance of Rs 25,000 cr to Gujarat

Under the terms of the MoU, the envisaged financial assistance stands at an impressive Rs 25,000 crore, dedicated to powering up various projects across Gujarat. "This substantial financial commitment underscores PFC's steadfast commitment to bolstering the power infrastructure in the region and supporting the state's ambitious initiatives in the power sector. Apart from facilitating the expansion of power infrastructure, the MoU shall inter-alia also help creating employment generation to the tune of 10,000 in the state of Gujarat," said the statement.

"This strategic alliance is anticipated to usher in a new era of energy sustainability and efficiency in Gujarat, setting the stage for transformative changes and catalysing the state's vision for a robust and reliable power infrastructure," it added.

"The signing of this MoU marks a significant milestone in the journey towards augmenting Gujarat's power landscape, reflecting a shared commitment towards a future of reliable, sustainable, and accessible power for the people of the state," said the Power Ministry.

Other dignitaries present on the occasion include Bhupendra Patel, Chief Minister of Gujarat, Rushikesh Patel, Minister of Health & Family Welfare, Higher & Technical Education, Law & Justice, government of Gujarat, Raj Kumar Chief Secretary, Gujarat, SJ Haider, Additional Chief Secretary, Gujarat, Mamta Verma, Principal Secretary (Energy & Petrochemicals Department), RK Chaturvedi, Executive Director (Projects), PFC and other Senior Officials of PFC, GUVNL and other power utilities.

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