With the addition of an SPV to oversee the projects of the Power Ministry, PFC grew by 9%

 With the addition of an SPV to oversee the projects of the Power Ministry, PFC grew by 9%

With the addition of an SPV to oversee the projects of the Power Ministry, PFC grew by 9%

This year, PFC stock has increased by around 205%, outpacing the benchmark Nifty, which has increased by 11%.

PFC Consulting, a fully owned subsidiary of PFC, established Paradeep Transmission as a special purpose vehicle (SPV). PFC Consulting owns all of the subsidiary, The SPV.

On December 1, Power Finance Corporation Ltd. (PFC) reported that PFC Consulting, its fully owned subsidiary, had established a special purpose vehicle (SPV) named Paradeep Transmission. This news caused PFC's shares to rise by more than 9%.

The action was taken in response to the Power Ministry appointing PFC Consulting Ltd as the "Bid Process Coordinator" (BPC) for the tariff-based competitive bidding process used to choose developers for Independent Transmission Projects (ITP).

"The Ministry of Power's tariff-based competitive bidding rules stipulate that the BPC must create the project profile and, if required, start the land acquisition and forest clearing procedures. In its exchange filing, PFC said that "for these activities, a Special Purpose Vehicle (SPY) which will carry out several preparatory activities of transmission projects."

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Initiating the land purchase process, creating surveys and reports, and, if required, clearing forests are all examples of preparatory actions for transmission projects. This SPV will be given to the winning bidder after the bidding procedure is over.

The project will be developed by the winning bidder chosen via the bidding procedure, according to the exchange filing.

PFC was trading 9.4% higher at Rs 366.80 on the National Stock Exchange (NSE) at 12:50 p.m. The stock has increased by around 205% this year, outpacing the Nifty, which has up by 1% during the same time frame.

Three crore shares have been traded on the BSE and NSE so far, with a one-week average of two crore shares.