Author: Don Obrien

Government accords Maharatna status to Power Finance Corp

The government on Tuesday accorded ‘Maharatna’ status to state-owned Power Finance Corp Ltd () giving the company greater operational and financial autonomy.

An order to this effect was issued by the Department of Public Enterprises, under the Ministry of Finance, a company statement said.

Incorporated in 1986, PFC is the largest

exclusively dedicated to the power sector under the administrative control of the power ministry.

The grant of ‘Maharatna’ status to PFC will impart enhanced powers to the PFC Board while taking financial decisions. 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% of its net worth, limited to Rs 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.

Power and renewable energy minister R K Singh said the recognition will enable PFC to offer competitive financing for the power sector.

“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% green energy by 2032 and effective monitoring and implementation of the New Revamped Distribution Sector Scheme with an outlay of more than Rs 3 lakh crore,” the statement said.

PFC chairman and managing director R S Dhillon said, “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 Rs 1.66 lakh crore and Rs 88,300 crore during FY 2020-21 and the highest ever profit of Rs 8,444 crore in 2020-21.”

Source link


Share on facebook
Share on twitter
Share on pinterest
Oliver Bolt

Oliver Bolt

On Key

Related Posts