Thiruvananthapuram, Aug. 29
The Kerala Power Finance Corporation Ltd (KPFC) is diversifying its activities to cover financing of all infrastructure development works in the State.
Accordingly, the company has been renamed as "Kerala State Power and Infrastructure Finance Corporation Ltd".
The Electricity Minister, Mr A.K. Balan, said here on Tuesday that the corporation was set to grow as one of the biggest financial institutions in the State. Apart from financing the projects of the Kerala State Electricity Board (KSEB), the corporation would extend assistance for all types of infrastructure projects in the State.
KPFC, incorporated on March 20, 1998, was promoted jointly by the State Government and KSEB with an authorised capital of Rs 100 crore and paid-up capital of Rs 26.65 crore. It has been mobilising funds through bonds, term loans from banks and fixed deposits from public.
The corporation has mobilised a total of Rs 1,003 crore between 1999 and 2006 and along with the paid-up capital and internal accruals, it has disbursed loans of around Rs 1,138 crore so far. It has been registering profit since inception.
The corporation has also launched loan schemes for providing financial assistance to companies supplying electrical components to KSEB. It has disbursed loans to the tune of Rs 7.56 crore to these firms so far.
According to provisional estimates, the corporation has recorded a net profit of Rs 1.98 crore in 2005-06 as against Rs 2.47 crore in the previous year. It has proposed a dividend of Rs 39.69 lakh for the year.
The corporation paid a guarantee commission of Rs 8.49 crore to the Government during the year (Rs 7.16 crore).