"We have selected Tata Capital as our joint venture partner for setting up a PE fund...in which they would be having 51% stake and PFC 49%," PFC director finance R Nagarajan said.
"PFC is in the process of finalising the JV terms. The fund is expected to become operational over six-nine months," Nagarajan said.
The power sector lender is providing funds for fuel sources like coal mine, coal transportation facility, and laying of gas pipelines, so as to widen the choice of fuel sources.
As per 12th Five-Year Plan projections, the Centre is targeting investments to the tune of Rs. 45 lakh crore in the infrastructure sector, of which R14 lakh crore is expected to be in the power sector.
PFC's target for sanctions in 2012-13 stood at Rs. 45,140 crore, of which it has sanctioned Rs. 41,732 crore.