New Delhi: Union Minister of Power and New & Renewable Energy RK Singh has Power Finance Corporation (PFC) on being accorded the ‘Maharatna’ status by the Government of India in the presence of Alok Kumar, Secretary, Power, RS Dhillon, CMD, PFC and senior officials of Ministry of Power and PFC. ‘Maharatna’ status allows PFC to have greater operational and financial autonomy.
An order to this effect has been issued by the Department of Public Enterprises, under the Ministry of Finance. Incorporated in 1986, PFC is the largest infrastructure finance company today, exclusively dedicated to the power sector under the administrative control of the Ministry of Power.
Power and New & Renewable Energy Singh said the conferment of ‘Maharatna’ status is a reflection of the confidence of the Government of India on PFC’s strategic role in the overall development of Indian power sector and an endorsement of its sterling performance.
“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,” said Singh.
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 per cent of the net worth of the concerned CPSE, limited to Rs 5,000 crore in one project.
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-19, 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 FY 20210-21.
“With the enhanced powers of Maharatna, PFC will diversify its operations to further accelerate its business growth going forward and leverage its position for achieving the government’s objectives for the overall development of the power sector. We are immensely thankful to employees of the Corporation and the past management for their unstinted support, contribution and dedication in making this great feat possible,” said Dhillon. /BI/
