Power Finance Corporation Limited (PFC), a Maharatna Government of India undertaking, has announced the successful transfer of one of its subsidiary companies as part of its project development process in the power transmission sector. On March 12, 2026, the company completed the divestment of NES Pune East New Transmission Limited to Power Grid Corporation of India Limited (PGCIL).
NES Pune East New Transmission Limited was initially created as a Special Purpose Vehicle (SPV) under PFC Consulting Limited, which is a wholly owned subsidiary of PFC. The SPV was established to facilitate the implementation of the “Network Expansion Scheme in Maharashtra for removal of Transmission Constraints in Pune Region-1.” The project involves the development of important 765/400 kV transmission infrastructure aimed at strengthening the electricity transmission network in the Pune region of Maharashtra.
The creation of SPVs for such projects is a common practice in the Indian power sector. These entities are usually formed during the early planning and bidding stages of transmission projects. Once the bidding process is completed and a developer is selected, the SPV is transferred to the winning bidder, who then takes responsibility for executing and developing the project.
In this case, Power Grid Corporation of India Limited emerged as the successful bidder through a competitive bidding process. Following the selection, PFC completed the transfer of the SPV to PGCIL in accordance with the established guidelines for transmission project development.
According to an official regulatory filing dated March 13, 2026, the total consideration received for the sale and transfer of the SPV was ₹8,04,74,138. The value was determined as per the terms outlined in the Share Purchase Agreement and in line with the guidelines issued by the Ministry of Power, Government of India.
PFC also clarified that the financial impact of this subsidiary on the company’s overall performance has been minimal. The contribution of NES Pune East New Transmission Limited to PFC’s total turnover, revenue, and net worth during the previous financial year was reported to be negligible. This indicates that the transfer is largely procedural and part of the normal process of handing over transmission projects from the planning stage to the execution stage.
The company further confirmed that the transaction does not qualify as a related party transaction and is not categorized as a slump sale. It also clarified that Power Grid Corporation of India Limited does not belong to the promoter or promoter group of PFC.
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