PFC shares rally 9% as arm forms subsidiary Paradeep Transmission

Shares of Power Finance Corporation Ltd (PFC) climbed over 9 per cent in Friday's trade after the Maharatna CPSE said its wholly -owned subsidiary PFC Consulting has formed a special purpose vehicle (SPV) namely Paradeep Transmission and that this SPV has been incorporated as a wholly-owned subsidiary of PFC Consulting.

The move was seen after PFC Consulting Limited was nominated as the 'bid process coordinator' (BPC) for selection of developer through tariff-based competitive bidding for the Independent Transmission Projects (ITPs) by Ministry of Power, Gol.

Following the development, the PFC stock rose 9.49 per cent to hit a high of Rs 366.75 on BSE.

"As per the provisions of tariff based competitive bidding guidelines issued by the Ministry of Power, the BPC has to prepare the project profile and initiate the process of land acquisition and forest clearance, if required. For these activities, a Special Purpose Vehicle (SPY) is required to be incorporated which will take up various preparatory activities of the transmission projects," PFC said in a filing to BSE.

This includes survey and preparation of report, initialisation of the process of acquisition of land and also initiate the process of seeking forest clearance, if required.

The SPV has to be transferred to the successful bidder selected through international competitive bidding process under tariff-based competitive bidding guidelines for transmission service issued by Ministry of Power, PFC said.

"Accordingly, the SPV has been incorporated as a wholly owned subsidiary of PFCCL to develop the aforementioned transmission scheme. This SPV will be transferred to the successful bidder after the completion of the bidding process. The successful bidder selected through the bidding process would develop the project," PFC said.

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