By State-owned Power Finance Corporation (PFC) has entered into an initial agreement with the Gujarat government to provide extensive financial support for the state’s power generation, transmission, and distribution projects. The Memorandum of Understanding (MoU) between Power Finance Corporation and the government of Gujarat was signed on January 3, 2024, as per a statement released by the company.
Objective of the MoU
The primary objective of this MoU is to offer comprehensive financial assistance for Gujarat’s power generation, transmission, and distribution initiatives. The signing ceremony took place in Gandhinagar and was attended by Parminder Chopra, Chairman and Managing Director of PFC, Jai Prakash Shivhare, Managing Director of Gujarat Urja Vikas Nigam Limited (GUVNL), and Bhupendra Patel, Chief Minister of Gujarat.
Collaborative Efforts
The MoU signifies a significant collaboration aimed at supporting various projects undertaken by key entities in the power sector, including Gujarat Urja Vikas Nigam Limited (GUVNL), Gujarat State Electricity Corporation Limited (GSECL), Gujarat Energy Transmission Corporation Ltd (GETCO), and several other regional distribution companies such as Dakshin Gujarat Vij Company Ltd (DGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), and Uttar Gujarat Vij Company Ltd (UGVCL).
Financial Commitment
According to the terms outlined in the MoU, Power Finance Corporation has committed an impressive sum of Rs 25,000 crore to support various power projects across Gujarat. This substantial financial commitment underscores PFC’s dedication to strengthening the power infrastructure in the region and backing the state’s ambitious endeavors in the power sector.
Project Impact and Employment Generation
In addition to facilitating the expansion of power infrastructure, the collaborative efforts outlined in the MoU are expected to create employment opportunities for up to 10,000 individuals in Gujarat. This initiative not only aims to enhance the state’s power capabilities but also contribute to socio-economic development through job creation and infrastructure enhancement.
