Power Finance Corporation (PFC) expects to increase its lending in the energy transition segment particularly in the renewable energy and sees itself maintaining a 25% market share in the renewable energy lending sector, the company’s Chairman and Managing Director Parminder Chopra said on Thursday.
“In medium to long term, we see existing business to be complimented by opportunities in energy transition and E-mobility,” Chopra said. “PFC is the largest lender for renewable energy sector and has supported 25% of installed RE capacity. We expect to maintain a similar marketing share in energy transition.”
The company is also targeting to increase its lending to solar and wind projects. “In short to medium term, we expect the loan asset book to grow at similar pace as in FY23 mainly driven by lending to traditional solar and wind projects and lending to discoms,” the company said.
The company’s current disbursement in the first half of the current financial year has been Rs 55,500 crore, 2.5% rise from the corresponding period last year. “The higher disbursements this year are mainly driven by lending on the distribution front and towards RE projects,” the chairman said.
In the first half of the financial year 2023-24, the power finance company received a 37% growth in its renewable space and is exploring more lending opportunities in the same in the coming quarters.
The government-owned financial institution which was formed with the primary objective of providing financial assistance to the power sector in the country, has now also forayed into the infrastructure and logistics sector and has sanctioned approximately Rs 25,000 crore so far.
