PFC gives ₹13.5 billion Financial Aid to BGCL

The Power Finance Corp (PFC) will provide a financial aid of ₹13.5 billion to the Bihar Grid Company Ltd (BGCL), which is a joint venture of the Power Grid Corporation of India and the Bihar State Power (Holding) Company Ltd. The funding for the project will be provided in debt-equity ratio of 80:20.

The amount has been sanctioned for the construction of 16 400 kV, 220 kV and 132 kV transmission lines, 4 associated substations and 7 line bay extension works in Bihar.

Of late, the PFC has been trying to shift its investments away from conventional energy in order to focus more on the country’s renewable energy projects, last-mile transmission and distribution projects in addition to making existing thermal units more energy efficient and refinancing of old projects.