In Short : PFC (Power Finance Corporation) has signed a Memorandum of Understanding (MoU) with the Government of Gujarat for power projects valued at Rs. 25,000 Crore. This strategic agreement reflects a significant collaboration to facilitate the development and investment in power infrastructure within the state.
In Detail : 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 (GoG), in Gandhinagar on January 3, 2024. The chief objective of this MoU is to provide comprehensive financial backing for the state’s generation, transmission, and distribution projects.
The MoU has been signed by Smt. Parminder Chopra, CMD PFC and Shri Jai Prakash Shivhare, MD (GUVNL) in the presence of Shri Bhupendra Patel, Chief Minister of Gujarat; Shri Rushikesh Patel, Minister of Health & Family Welfare, Higher & Technical Education, Law & Justice, Govt. of Gujarat; Shri Raj Kumar Chief Secretary, Govt. of Gujarat; Shri S. J. Haider, Additional Chief Secretary, Govt. of Gujarat; Smt. Mamta Verma, Principal Secretary (Energy & Petrochemicals Department); Shri R.K. Chaturvedi, Executive Director (Projects), PFC and other Senior Officials of PFC, GUVNL and other power utilities.
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.
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.
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.
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.