PFC Infra Finance IFSC Begins Operations in GIFT City, Gujarat
PFC Infra Finance IFSC Limited (PIFIL) has received approval from the International Financial Services Centres Authority (IFSCA) to start operations as a Finance Company in GIFT City, Gujarat. This marks PIFIL as the first company in the International Financial Services Centre (IFSC) dedicated to lending in the power and infrastructure sectors.
PIFIL is a subsidiary of Power Finance Corporation Limited (PFC), part of India’s largest non-banking financial company (NBFC) group. It will offer foreign currency loans to both government and private entities, aiming to provide lending services in India and abroad. This move is expected to strengthen India’s position as a global financial hub.
The Certificate of Registration was presented by K. Rajaraman, Chairperson of IFSCA, to Parminder Chopra, Chairperson of PFC and PIFIL. Rajaraman praised PFC for being the first government NBFC to receive this certification for its IFSC subsidiary. He emphasized the importance of financing renewable energy projects to support India’s Net Zero target and highlighted PIFIL’s role in bridging the financial gap for green energy investments.
Parminder Chopra expressed pride in leading the first finance company in the IFSC focused on power sector lending. She stated that funding for energy transition will be a key focus, aligning with India’s push towards clean energy. PIFIL will leverage PFC’s expertise in the power sector to contribute significantly to the growth of the IFSC.
PIFIL’s operations are expected to enhance funding options for infrastructure and clean energy projects, supporting India’s efforts to become a major player in global finance.
Doubts Revealed
PFC Infra Finance IFSC Limited (PIFIL) -: PFC Infra Finance IFSC Limited, or PIFIL, is a company that provides financial services, specifically focusing on lending money for power and infrastructure projects. It is a part of the Power Finance Corporation Limited, which is a government-owned company in India.
GIFT City -: GIFT City stands for Gujarat International Finance Tec-City. It is a special area in Gujarat, India, designed to be a global financial and IT services hub, similar to places like Singapore or Dubai.
IFSC -: IFSC stands for International Financial Services Centre. It is a place where financial services are provided to customers outside the country, like foreign currency loans and international banking.
Power Finance Corporation Limited -: Power Finance Corporation Limited is a company owned by the Indian government. It provides financial support to the power sector, helping to fund projects that generate and distribute electricity.
Foreign currency loans -: Foreign currency loans are loans given in a currency that is not the local currency of the country. For example, in India, a foreign currency loan might be given in US dollars or Euros instead of Indian Rupees.
IFSCA -: IFSCA stands for International Financial Services Centres Authority. It is a regulatory body in India that oversees financial services in the IFSCs, ensuring they follow the rules and operate smoothly.
Clean energy goals -: Clean energy goals refer to plans and targets set by a country to use more energy from renewable sources like solar, wind, and hydroelectric power, which are better for the environment compared to fossil fuels like coal and oil.
