Power Finance Corporation (PFC) on Tuesday received approval from the Reserve Bank of India (RBI) to set up a wholly-owned finance company in the GIFT City in Gujarat.

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The entity at the International Financial Services Centre (IFSC) will present new business opportunities for PFC and contribute to the growth of the country's power sector, PFC Chairman and Managing Director Parminder Chopra said in a statement.

According to a regulatory filing, PFC is in receipt of the no objection letter from the RBI for setting up a finance company as a wholly-owned subsidiary in the GIFT City.

"The GIFT City platform provides a conducive environment for international lending activities and a world-class infrastructure. We are confident that PFC will leverage these advantages to carve a niche for itself in the global market," she said.

As per the filing, PFC's entry into the IFSC is expected to open up new business opportunities and establish its global presence. PFC is an infrastructure finance company under the Power Ministry.

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