HSBC has sunk over US$ 370 million into Power Finance Corporation through underwriting its bond issuances. Power Finance Corporation plays a key role for India’s coal plant pipeline. Under the control of the Ministry of Power, PFC sets up shell companies to finance, plan and facilitate so-called “Ultra Mega” coal power projects in India. These shell companies acquire the necessary land, obtain permits and financing for the projects that are then sold to other power companies in a bidding process. PFC was thus responsible for financing a large part of the Indian coal boom, which led to the tripling of India’s coal-fired capacity between 2007 and 2017. PFC currently still has 8,000 MW of new coal projects under development.
Find out more in our Coal Report page 22: