Indian State-run Power Finance Corporation Ltd has informed that the company has signed a memorandum of understanding (MoU) with Ex-Im Bank of U.S. for financing of power projects. Under the terms of MoU, PFC will receive USD 800 million from Ex-Im Bank of US under India infrastructure facility.

Ex-Im Bank of the United States has recently approved an India Infrastructure Facility that would support US exports to Indian projects in sectors such as power and renewable energy generation.

Under the initiative, PFC will identify power projects appropriate for Ex-Im Bank financing, focussing on clean and efficient power technologies, goods and services.

PFC is one of the major financial institutions approved under the India Infrastructure Facility with an allocation of $800 million.
Ex-Im bank said that the borrowers of PFC for project related imports from US would utilize the facility during the next couple of years.

The special delegated line of credit under the facility requires approval of Reserve Bank of India and does not require any guarantee from Government of India, an official statement said.