Companies

Power Finance Corporation gets ‘Maharatna’ status

Our Bureau New Delhi | Updated on October 12, 2021

Becomes the 11th public sector enterprise to get the status in the country

The Centre has accorded the prestigious ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC). This is expected to give PFC greater operational and financial autonomy.

An order conferring ‘Maharatna’ status to PFC was issued on Tuesday by the Department of Public Enterprises under the Finance Ministry. PFC has become the 11th public sector enterprise to get the ‘Maharatna’ status in the country.

Incorporated in 1986, PFC is the largest Infrastructure Finance Company today, exclusively dedicated to Power Sector under the administrative control of the Power Ministry.

The grant of ‘Maharatna’ status will impart enhanced powers to the PFC Board while taking financial decisions, an official release said.

The board of a ‘Maharatna’ CPSE can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15 per cent of the net worth of the concerned CPSE, limited to ₹5,000 crore in one project.

The Board can also structure and implement schemes relating to personnel and Human Resource Management and Training. They can also enter into technology Joint Ventures or other strategic alliances among others, release said.

RK Singh, Union Minister of Power and New & Renewable Energy, said that “conferment of ‘Maharatna’ status is a reflection of the confidence of the government on PFC’s strategic role in the overall development of Indian Power Sector and an endorsement of its sterling performance.

Competitive financing

This new recognition will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable & reliable ‘Power For All 24x7’. The enhanced powers that come with Maharatna Status will also help PFC in pushing the government’s agenda of funding under the National Infrastructure Pipeline, national commitment of 40 per cent green energy by 2030 and effective monitoring and implementation of the new revamped distribution sector scheme with an outlay of more than ₹3-lakh crore, he added.

RS Dhillon, CMD, PFC, said that “PFC has received the Maharatna Status on the back of exceptional financial performance during the last three years. Despite Covid, PFC witnessed the highest ever annual sanctions and disbursements to the power sector to the tune of ₹1.66-lakh crore and ₹88,300 crore during FY 2020-21 and the highest ever profit of ₹8,444 crore in FY 20210-21.

Published on October 12, 2021

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