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PTC India Financial to consolidate renewable business
PTC India Financial Services Ltd, a subsidiary of PTC India Ltd, is seeking to consolidate its renewable energy lending business, while focussing on infrastructure sector, which it had forayed into lately.
Ashok Haldia, Managing Director and Chief Executive Officer, PTC India Financial Services, told BusinessLine that, “We have been growing at a compounded annual growth rate (CAGR) of 25-30 per cent and expect to achieve a similar pace given the opportunities in the renewable energy and infrastructure sectors.”
“We had diversified into the infrastructure sector to build on our expertise in financial services. Given the opportunities in the rapidly growing roads and ports sectors, we are keen to play a role in these sectors backing projects,” he said.
Over the years, the business mix has changed with the renewable energy sector accounting for nearly 60 per cent of the business followed by the thermal power sector at 18-20 per cent.
“With huge momentum likely to come in the roads, ports and other infrastructure sectors, we are keen to leverage on our expertise to lend in these sectors, apart from opportunities to fund the transmission networks being developed by private sector players,” Haldia explained.
The company’s credit portfolio continues to grow but profitability is impacted due to the legacy non-performing assets and other stressed accounts.
Its outstanding credit aggregate of funds and non-fund based against sanctioned loans has crossed the ₹13,000-crore mark as of December 31, 2017, recording a growth of 31 per cent year-on-year.
Asked about the focus on renewable sector, Haldia said: “Solar and wind projects will continue to be focus area for the company.”
On the power demand-supply situation, Haldia said: “The demand is likely to pick up as more industries come up across the country. This will potentially lead to firming up of energy prices.”
The company has funded more than 108 renewable projects and has thus far sanctioned ₹12,693 crore with outstanding debt of ₹6,511 crore.
While for the wind energy segment, PFS has sanctioned a debt of ₹4,349 crore with outstanding debt of ₹3,390 crore, for the solar energy sector it sanctioned ₹8,081 crore with outstanding debt of ₹2,931 crore.