Kolkata, Jan 15 (PTI) State-owned Power Finance Corporation (PFC) is open to financing nuclear power projects but will move ahead only after the government lays down a clear policy framework, company Chairperson
Parminder Chopra said on Thursday.
Chopra said funding nuclear projects would require careful evaluation of viability and revenue certainty, including clarity on fuel sourcing and power offtake arrangements.
“We have to see the viability and have assurance of the revenue — from where they are going to get the fuel and to whom they are going to supply the power,” she said, speaking on the sidelines of the launch of the third taxable public issue of NCDs of up to Rs 5,000 crore.
The company is awaiting government guidelines before framing its internal policies for funding the sector.
“Once we have some clarity on the policy front of the government, based on those guidelines we will frame internal policies also,” Chopra said, adding that PFC would rely on its existing appraisal mechanism once the policy environment is in place.
The Union Budget 2025-26 outlines a significant push towards nuclear energy as part of India’s long-term energy transition strategy. The government has set an ambitious target of 100 GW of nuclear power capacity by 2047.
Meanwhile, Chopra highlighted a sharp improvement in PFC’s asset quality, with the net non-performing asset (NPA) ratio declining to 0.37 per cent at present. She attributed the stress seen in the mid-2010s to the Supreme Court’s deallocation of coal mines, which led to the cancellation of power purchase agreements and rendered several projects unviable.
The remaining bad loans, amounting to Rs 10,400 crore, are from the private sector only, and 80 per cent of these are fully provided for, with the assets either already under liquidation or undergoing resolution, she said.
For the remaining around Rs 2,000 crore of NPA debt, restructuring negotiations are in progress, she added.
Asked about the sharp improvement in NPAs and gross stage III assets, Chopra said it was largely due to the resolution of two very large accounts.
Chopra also said that PFC has significantly reduced its exposure to coal-based power projects as part of a strategic shift. Thermal exposure has come down from about 80 per cent to nearly 42 per cent.
She said incremental lending is now largely focused on power distribution and renewable energy, including hydro projects. At present, generation and distribution together account for about 86 per cent of PFC’s portfolio, while renewables and hydro comprise around 12-13 per cent. However, this share will grow gradually, she said.
PFC has so far supported 64 GW of renewable energy capacity, with its portfolio reaching Rs 84,679 crore, expanding at over 32 per cent in the first half of FY26. Chopra, however, said this high rate of growth may not be sustainable as the base grows, but traction will continue. PTI BSM NN
