Government grants ‘Maharatna’ status to Power Finance Corporation
The government has granted “Maharatna” status to the state-owned Power Finance Corporation (PFC), a move that will pave the way for greater financial and operational efficiency for the company, according to a company statement.
“The Government of India has granted the prestigious ‘Maharatna’ status to the state-owned Power Finance Corporation (PFC), thereby giving PFC greater operational and financial autonomy,” the company said in the statement.
A decree to this effect was published Tuesday by the Department of Public Enterprises, under the supervision of the Ministry of Finance.
Incorporated in 1986, PFC is the largest infrastructure finance company dedicated to the electricity sector under the administrative control of the Ministry of Energy.
Granting ‘Maharatna’ status to PFC will give increased powers to the PFC Board of Directors when making financial decisions.
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 % of the net worth of the relevant CPSE, limited to Rs 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.
Union Energy and New and Renewable Energy Minister RK Singh congratulated and remarked that “the awarding of ‘Maharatna’ status is a reflection of the government’s confidence in the strategic role of PFC in the overall development of the power industry and an endorsement of its excellent performance.”
He added that this new recognition will enable 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.
PFC Chairman and Chief Executive, RS Dhillon, said in the statement that PFC had been awarded “Maharatna” status due to its outstanding financial performance over the past three years. “Despite COVID-19, PFC witnessed the highest annual sanctions and disbursements ever recorded in the power sector to the tune of Rs 1.66 lakh crore and Rs 88,300 crore in 2020-21, and profit the highest on record of Rs 8,444 crore in the financial year 2020-21.”
Dhillon added that with the increased powers of “Maharatna”, PFC will diversify its operations to further accelerate the growth of its business and leverage its position to achieve the government’s goals for the overall development of the power sector.
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