The Center has granted prestigious ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC). This should give PFC greater operational and financial autonomy.
An order conferring “Maharatna” status on PFC was issued on Tuesday by the Public Enterprises Department of the Ministry of Finance. PFC has become the 11th public sector company to achieve Maharatna status in the country.
Incorporated in 1986, PFC is today the largest infrastructure finance company, exclusively dedicated to the electricity sector under the administrative control of the Ministry of Energy.
The granting of ‘Maharatna’ status will give increased powers to the PFC board when making financial decisions, according to an official statement.
The board of directors of a “Maharatna” CPSE may take equity stakes to undertake financial joint ventures and wholly owned subsidiaries and undertake mergers and acquisitions in India and abroad, subject to a cap of 15 percent cent of the net worth of the relevant CPSE, limited to ₹5,000 crore in a project.
The Council may also structure and implement programs relating to the management and training of personnel and human resources. They may also enter into technology joint ventures or other strategic alliances, among others, according to the statement.
RK Singh, Union Minister for Energy and New and Renewable Energy, said the “awarding of ‘Maharatna’ status is a reflection of government’s confidence in PFC’s strategic role in global development. of the Indian power sector and an endorsement of its excellent performance. .
Competitive funding
This new recognition will allow PFC to offer competitive financing for the power sector, which will go a long way towards making “Power For All 24×7” accessible and reliable. The increased powers that come with Maharatna status will also help PFC advance the government’s funding agenda under the national infrastructure pipeline, the national commitment to 40% green power by 2030 and monitoring and effective implementation of the new revamped retail sector program with an outlay of over ₹3-lakh crore, he added.
RS Dhillon, CMD, PFC, said, “PFC has been granted Maharatna status through outstanding financial performance over the past three years. Despite Covid, PFC witnessed the highest annual penalties and disbursements ever in the power sector of ₹1.66 crore and ₹88,300 crore in the 2020-21 financial year and profit highest on record of ₹8,444 crore in FY 20210-21.
