Shares of Power Finance Corporation (PFC) jumped over 4% after the Maharatna enterprise inked a Memorandum of Understanding (MoU) with the State Government of Gujarat for projects worth Rs 25,000 crore. 

Power Finance Corp shares hit an intraday high of Rs 409.00, up 4.04% from the previous closing price on the National Stock Exchange (NSE). At 12:45 pm, the stock was trading 3.4% higher at Rs 406.45. 

According to a release dated January 3 by the Ministry of Power, the chief objective of this MoU is to provide comprehensive financial backing for the state’s generation, transmission, and distribution projects worth Rs 25,000 crore.

The MoU between the public sector Non-Banking Financial Company (NBFC) and the state government will further support various projects undertaken by Gujarat Urja Vikas Nigam Limited (GUVNL), Gujarat State Electricity Corporation Limited (GSECL), Gujarat Energy Transmission Corporation Ltd (GETCO), Dakshin Gujarat Vij Company Ltd (DGVCL), Madhya Gujarat Vij Company Ltd (MGVCL), Paschim Gujarat Vij Company Ltd (PGVCL), and Uttar Gujarat Vij Company Ltd (UGVCL).

Parminder Chopra, Chairman and Managing Director (MD) of PFC, and Jai Prakash Shivhare, MD of GUVNL, signed the MoU in the presence of Chief Minister of Gujarat, Bhupendra Patel.

The collaboration is set to facilitate long-term debt and other critical funding necessities vital for executing these diverse projects. The MoU will also help generate employment for up to 10,000 people in Gujarat.