It disbursed Rs.1,138 crore to power sector ventures
Government approves diversification moveRenamed as Kerala State Power and Infrastructure Finance Corporation Limited
THIRUVANANTHAPURAM: Kerala Power Finance Corporation (KPFC) will henceforth finance infrastructure projects outside power sector also.
This company promoted by the State Government and Kerala State Electricity Board (KSEB) as a special purpose vehicle to mobilise funds for power sector development attained sufficient strength over the eight-year period since its inception in 1998 to diversify its financing activities to other infrastructure sectors also.
The Government, the other day, approved this diversification idea mooted by the company's board of directors. The company was renamed Kerala State Power and Infrastructure Finance Corporation Limited (KSPIFC), Electricity Minister A.K. Balan said.
The renaming of the company coincided with the inauguration of a new office complex at Vellayambalam here on Wednesday. The office of Kerala State Electricity Regulatory Commission would also function from this office complex. The five-storeyed office complex entailed an investment of Rs.2.4 crore, the Minister said.
This company, which began with a paid up capital of Rs.26.65 crore and authorised capital of Rs.100 crore, so far paid the Government a guarantee commission of Rs.18.36 crore. It mobilised Rs.1,003 crore through bonds, term loans from banks and fixed deposits from the public.
It disbursed Rs.1,138 crore to power sector ventures in the State over the last eight years, deploying the funds mobilised from outside along with the paid up capital of Rs.26.65 crore and internal accrual of funds, the company's Managing Director V.V. Koshy said.
The company came up with profits right from the year of its inception.
The profit for 2005-06 stood at Rs. 1.98 crore against Rs. 2.47 crore in 2004-05. The company also paid dividend to the Government and the KSEB consistently during the last five years.