India Solar, Wind, Biomass, Biofuels – EAI

Power Finance Corporation Limited

Latest News for Energy Efficiency, Solar, Wind, Biomass Power, Biofuels, Waste to Energy

Power Finance Corporation Ltd. (PFC), is one of the leading public financial institutions of India providing fund and non-fund based support for the development of power sector, proposes to empanel eligible entities as Business Development Associates (BDAs) who will bring bankable loan proposals of wind, small hydro, biomass, co-generation, energy saving projects, captive power projects, etc. and assist their clients in availing financial assistance from PFC.

Financial products available with PFC for setting up captive power are explained below:

Project term loans

The policy and framework of Power Finance Corporation (PFC) for financing solar PV power generation projects are given below.

Purpose: - To provide finance to all types of projects in state & private sector viz. generation, transmission, distribution, renovation & modernization, uprating, environment upgradation, metering, etc. The infrastructure projects having forward and backward linkages with power projects are also covered.

Eligible entities: - The entities engaged in power generation, power transmission, power trading, power distribution or any combination of these activities including captive / co-gen power producers.

Extent of assistance:-

  • Central / State sector entities - Up to 70% of the project cost
  • Reforming State sector entities - Up to 80% of the cost of project.
  • Private sector entities - Up to 50% of the project cost.

Interest rates & other charges:

  • Interest rates as notified by the Corporation from time to time. Special interest rates are also available for loans exceeding Rs. 700 cr. for generation projects in state sector and Rs. 500 cr. in private sector.
  • Interest rates prevailing on the date of disbursement(s) shall be applicable.
  • Incentive / rebate available for timely payment of dues for state/ central sector utilities.
  • Penal interest payable on default-payments.
  • Upfront fees as may be applicable for respective borrowers from time to time.
  • Processing fee, Lead fee & facility Agent fee for private sector entities as applicable from time to time.
  • Disbursement mechanism: - Disbursement will be made, against BILLs, as per the Disbursement Schedule submitted by the borrower. In case of Small Loans (below Rs. 20 cr.), simplified disbursement procedure is applicable. In the case of private sector borrower, disbursement is made through Trust and Retention Account mechanism.
  • Interest payment: Interest is to be paid quarterly, on standard due dates.

Interest rate reset option

  • Option to avail interest rate with reset after every 3 years or with reset after 10 years.
  • Interest reset condition to apply from the standard due date following the date of first disbursement after 3/10 years, as the case may be.


Moratorium on principal is available upto 6 months from the date of project commissioning / COD. There is no moratorium on interest payment.



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