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PFC gets Maharatna status; march towards more financial autonomy

New Delhi, Oct 12 (UNI) The government has granted ‘Maharatna’ status to Power Finance Corporation Ltd (PFC) giving the state-owned company greater operational and financial autonomy.

Incorporated in 1986, PFC is the largest infrastructure finance company exclusively dedicated to power sector under the administrative control of the Ministry of Power. The grant of ‘Maharatna’ status to PFC will increase financial powers of the company board.

As per the extant rule, the board of a ‘Maharatna’ public sector company 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 their networth, limited to Rs 5,000 crore in one project.

The board can also structure and implement schemes relating to human resource management and training. They can also enter into technology Joint Ventures or other strategic alliances among others.

R.S. Dhillon, CMD, PFC said that PFC has received the Maharatna status on the back of exceptional financial performance during the last 3 years. “Despite Covid, PFC witnessed the highest ever annual sanctions and disbursements to the power sector to the tune of Rs1.66 lakh crore and Rs 88,300 crore during FY 2020-21 and the highest ever profit of Rs 8,444 crore in FY 20210-21. PFC played a significant role amid Covid by funding DISCOMs under the Liquidity Infusion Scheme (‘Aatmanirbhar Bharat Scheme’) to avert liquidity crisis in Power Sector,” he said.

Union Minister of Power and New & Renewable Energy R.K. Singh congratulated PFC for getting the coveted title and said that according ‘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.

“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 24×7’. 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 Rs 3 lakh crore, the Minister said. (pics courtesy.. Psuconnect.in)

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