PFC incorporates SPV for Fatehgarh-II synchronous condenser project
Power Finance Corporation Limited (PFC) has announced the incorporation of Fatehgarh II Transmission Limited as a wholly owned subsidiary of PFC Consulting Limited (PFCCL), which is itself a wholly owned subsidiary of PFC.
The special purpose vehicle (SPV) has been formed for the installation of two Synchronous Condenser (SynCon) units at the 765/400/220 kV Fatehgarh-II Pooling Station.
The project follows the recommendation of the National Committee on Transmission (NCT) during its 33rd meeting held on September 16, 2025, which appointed PFCCL as the Bid Process Coordinator (BPC) for the scheme. The Ministry of Power later notified the transmission project under the Tariff Based Competitive Bidding (TBCB) route through an Official Gazette notification dated October 30, 2025.
As BPC, PFCCL will undertake preparatory activities including development of the project profile, land acquisition, site surveys, and forest clearance processes wherever required. The SPV structure has been established in line with the Ministry of Power’s TBCB guidelines.
Following completion of the international competitive bidding process, Fatehgarh II Transmission Limited will be transferred to the successful bidder, which will execute the project.
Under the project scope, the selected transmission service provider (TSP) will establish two SynCon units at the 400 kV level of the 765/400/220 kV Fatehgarh-II Pooling Station on a Build, Own, Operate, and Transfer (BOOT) basis. The project also includes two 400 kV bays.
Each SynCon unit will provide dynamic support of at least +300 MVAr / -200 MVAr and a minimum short-circuit contribution of 1200 MVA at the point of common coupling (PCC). The scheduled commercial operation date (COD) for the project is 30 months from the effective date.
Synchronous condensers are used for voltage regulation and reactive power management in transmission systems. The Fatehgarh-II project is aimed at improving grid stability and strengthening India’s inter-regional transmission infrastructure.
The featured photograph is for representation only.
