PFC Eyeing Nuclear Power Funding Amid Policy Await

The Power Finance Corporation (PFC) is open to funding nuclear power projects, contingent on clear government policies. Chairperson Parminder Chopra emphasizes evaluation of project viability and revenue certainty. The Union Budget 2025-26 prioritizes nuclear energy expansion. PFC also underscores improved asset quality and a strategic pivot towards renewable energy.

The Power Finance Corporation (PFC), a state-owned enterprise, has expressed interest in financing nuclear power projects. However, a definitive move will depend on the establishment of a clear policy framework by the government, as stated by Chairperson Parminder Chopra on Thursday.

Chopra stressed the importance of evaluating project viability and securing revenue certainty, which includes ensuring clarity on fuel sourcing and power offtake arrangements. "We need to understand the project's viability and revenue assurances — where the fuel comes from and who will receive the power supply," she noted during the launch of the third taxable public issue of NCDs worth up to Rs 5,000 crore.

Chopra also pointed to PFC's improved asset quality, attributing decreased non-performing asset ratios to resolved large accounts. PFC is shifting from coal-based power to focus on renewable energy, especially as new guidelines support a significant push towards nuclear power within India's long-term energy strategy.

(With inputs from agencies.)