Power Finance Corporation (PFC), a Govt of India undertaking, is exploring the possibility of financing in electric vehicle space.
PFC, has been providing financial assistance to power projects across India including generation, transmission, distribution and Rehabilitation and Modernisation projects. Established in 1986 and wholly owned by the Government of India, it went public in January, 2007. PFC has been one of the leading lender to electricity projects. Since 2016-17 it has been diversifying its borrowing portfolio by raising funds from international markets. In November 2017, PFC launched its Green Bond issue for USD 400 million. In first quarter of FY2020, it raised about USD 1.3 billion from international markets.
Perhaps the need to hedge the risk with traditional power projects, is compelling PFC to explore new areas including railway electrification, electric vehicles and charging infrastructure. Though this news is not verified officially from PFC.
Electric vehicle or electric vehicle charging infrastructure seems to be the hottest thing today. But funding a power project where the purchase or utilisation of capacity is nearly guaranteed, will be different from what PFC will to do in electric vehicle space. It will have to do the hard work of fishing in muddy and frothy waters. Also there will be skill set required to venture in this segment. Even if they manage to do so, what will be the cost? Loss of focus for PFC and moving away from initial objective to fund power projects maybe a bigger questions which someone will have to answer. Personally I would have suggested funding or financing solar power projects and infrastructure associated with it.