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{{short description|Indian infrastructure finance company}}
Power Finance Corporation is an Indian Financial Institution. It is the financial back bone of Indian Power Sector Industry. Net worth of the company in the year 2007-2008 was 8688 Crore Indian Rupees. The company has been conferred with various awards since its inception in year 1986. The latest in the series is "Golden Peacock Award for Excellence in Corporate
{{more citations needed|date=July 2016}}
Governance".It is also an ISO 9001:2000 certified company and enjoys the status of Navratna Company in India.
{{copy edit|date=March 2024}}
{{Use dmy dates|date=August 2022}}
{{Use Indian English|date=August 2021}}
{{Infobox company
| name = Power Finance Corporation Ltd.
| logo = Power Finance Corporation Logo.svg
| logo_size = 200px
| type = [[Public company|Public]]
| traded_as = {{NSE|PFC}}<br />{{BSE|532810}}
| industry = [[Financial service]]s
| genre = Financial Services
| foundation = {{start date and age|1986|07}}
| dissolved =
| location_city = [[New Delhi]]
| area_served = India
| key_people = Parminder Chopra {{small|([[Chairman]] & [[Managing Director|MD]])}}
| products = Rupee Term Loan, Foreign Currency Loan, Short Term Loan
| services = Financial Consulting, Financial Products, Investment Banking, Loan Management, Linkage Management
| revenue = {{Increase}} {{INRConvert|91175|c}} (2024) <ref name="Balance Sheet 2024">[https://www.bseindia.com/xml-data/corpfiling/AttachLive/43c8e628-972e-4087-a214-19702ab79827.pdf "Balance Sheet 31.03.2024"].</ref>
| operating_income = {{Increase}} {{INRConvert|33588|c}} (2024)<ref name="Balance Sheet 2024"/>
| profit = {{increase}} {{INRConvert|26461|c}} (2024)<ref name="Balance Sheet 2024"/>
| assets = {{increase}} {{INRConvert|1038877|c}} (2024)<ref name="Balance Sheet 2024"/>
| equity = {{increase}} {{INRConvert|134288|c}} (2024)<ref name="Balance Sheet 2024"/>
| num_employees = 484 (2020)
| owner = [[Government of India]]
| parent =
| divisions =
| subsid = [[REC Limited|Rural Electrification Corporation Limited]]
| footnotes =
| location_country = India
| title =
| homepage = {{URL|http://www.pfcindia.com|pfcindia.com}}
}}


'''Power Finance Corporation Ltd.''' ('''PFC''') is an Indian [[Public Sector Undertakings in India|public sector]] company engaged in infrastructure finance activities. Established in 1986, it provides financing for the [[Electricity sector in India|Indian power sector]] and is under the admistrative control of the [[Ministry of Power (India)|Ministry of Power]], [[Government of India]].<ref>https://pfcindia.com/DocumentRepository/ckfinder/files/Investors/Investor_Presentations/Investor%20Presentation%20Q1%20FY%2024.pdf {{Bare URL PDF|date=August 2024}}</ref> PFC was classified as a '[[Public Sector Undertakings in India#Management_and_classification|Maharatna]]' enterprise on 12 October 2021.
'''Organization Structure:'''
Chairman and Managing Director of the company at present is Dr. V.K. Garg. The company has three wings - Institutional Development & Administration(IDA) Division, Projects Division, Finance & Financial Operations division. IDA Division looks after the Power reforms, review and analysis. Project Division controls the operation in various states. Finance & Financial Operations Division looks after the Fund Mobilization and Disbursement. Number of employees during year 2007-2008 were 309.


Initially wholly owned by the [[Government of India]], the company issued an [[IPO]] in January 2007. The issue was oversubscribed by over 76 times, which is one of the largest for an IPO of any Indian CPSU.<ref>{{cite web|url=http://economictimes.indiatimes.com/PFCs_IPO_over-subscribed_73_times/articleshow/1568852.cms |title=PFC's IPO over-subscribed 73 times - Economic Times |publisher=Economictimes.indiatimes.com |date=7 February 2007 |access-date=29 November 2012}}</ref> PFC is listed on the [[Bombay Stock Exchange]] (BSE) and the [[National Stock Exchange of India|National Stock Exchange]] (NSE). It is also an [[ISO 9001:2000]] certified company<ref>[http://archives.chennaionline.com/events/Business/2004/07power.asp Chennai Online, 5 Aug 2004] {{webarchive|url=https://web.archive.org/web/20091224084608/http://archives.chennaionline.com/events/Business/2004/07power.asp |date=24 December 2009 }}</ref> and enjoys the status of [[Maharatnas|Maharatna PSU]] in India. On 6 December 2018, the [[Government of India]] approved PFC's takeover of [[Rural Electrification Corporation|REC]].<ref>{{cite news | url=https://economictimes.indiatimes.com/industry/energy/power/cabinet-approves-rec-takeover-by-power-finance-corporation/articleshow/66975840.cms | title=Cabinet approves REC takeover by Power Finance Corporation. | date=6 December 2018 | first=Sarita | last=Singh | newspaper=The Economic Times | access-date=30 May 2019 }}</ref> The acquisition transaction was completed on 28 March 2019 with PFC paying almost Rs. 145 million to the government of India for the 52.63% stake.
'''Borrowings:'''
PFC raises funds with the help of borrowing from short term and long term loans. It has also raised External Commercial Borrowings (ECB) through private placement in US market.


==Organization structure==
'''Projects:'''
The corporation is headed by the chairman and managing director, who at present is [[Parminder Chopra]].<ref>{{Cite web|last=www.ETEnergyworld.com|title=PFC appoints Ravindra Singh Dhillon as CMD from June 1 - ET EnergyWorld|url=https://energy.economictimes.indiatimes.com/news/power/pfc-appoints-ravindra-singh-dhillon-as-cmd-from-june-1/76137454|access-date=2020-06-11|website=ETEnergyworld.com|language=en}}</ref> The company has three wings, each headed by a Functional Director namely the Commercial Division, Projects Division and Finance Division. The Commercial Division looks after the credit appraisal and categorization of borrower entities, power sector reforms, review and analysis. The Projects Division controls the operation in various states and project appraisal. Finance Division looks after the Fund Mobilization and Disbursement. PFC is a lean organization. The number of employees as on 31 March 2023 was around 550.
It provides the financial support to various Power Projects (Like Thermal, Hydro, Solar, Wind) which includes Ultra Mega Power Projects, R&M Projects and Independent Transmission Projects.


==Borrowings==
The company also has the mechanism of rating different state Power Utilities on its performance.
Most of the PFC's funds are raised through rupee-denominated bonds, which have the highest credit rating in the Indian market and in international markets, rated at par with the Indian [[sovereign rating]]. It also borrows short term and long term from various banks and other financial institutions, and raised [[external commercial borrowing]]s (ECB) through private placement in the US market. PFC is one of the institutions eligible for raising funds through capital gain tax bonds under section 54EC of the [[Income Tax Act, 1961]].

Over the last two-three years, PFC has focused on diversifying its borrowing portfolio by raising funds from international markets. In November 2017, PFC launched its main Green Bond issue for US$400 million, which witnessed the tightest ever spread for any Indian Issuer for its maiden 10-year issue. In the first quarter of the Financial year 2020, PFC has raised about US$1.3 billion from the international markets. Out of this US$1 billion was raised in June 2019, which was the first dual and largest USD bonds transaction for Govt owned Indian NBFC. This was also PFC's first borrowing from the international markets after the successful acquisition of REC Limited.

In 2017, PFC was granted approval by the Ministry of Finance, Govt. of India, to raise funds under section 54EC of the Income Tax Act 1961. PFC was the first company to obtain such approval post the budget announcement in February 2017. PFC has raised more 14.7 million dollars under these bonds since their launch in 2017.
==Operations==
Since its inception, PFC has been providing financial assistance to power projects across India including generation, transmission, distribution and RM&U projects. Recently, it began financing other infrastructure projects which have backward linkages to the power sector like coal mine development, fuel transportation, oil & gas pipelines, etc. The borrower profile includes State Electricity Boards, State sector power utilities, Central sector power utilities and Private sector companies. PFC is also the nodal agency for the implementation of the ambitious [[Ultra Mega Power Plants (India)|Ultra Mega Power Plants]] (UMPPs) and the [http://www.pfc.gov.in/Content/R_APDRP.aspx R-APDRP] program<ref name=RAPDRP-H-01>[http://www.apdrp.gov.in/ About R-APDRP]</ref><ref name=RAPDRP-H-02>[http://www.pfc.gov.in/Content/R_APDRP.aspx About R-APDRP from PFC website]</ref> of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.

==Subsidiary and Associate Companies==
PFC presently has ten subsidiaries, seven of which are SPVs (shell companies) to implement the UMPP project:

* PFC Consulting Ltd. (PFCCL) is a wholly owned subsidiary handling fee based services.
* Orissa Integrated Power Limited
* Coastal Karnataka Power Limited
* Coastal Tamil Nadu Power Limited
* Coastal Maharashtra Power Limited
* Jharkhand Integrated Power Limited
* Akaltara Power Limited

After the purchase of the entire holding of the Govt. of India in [[Rural Electrification Corporation Limited]], became a subsidiary of PFC in the fiscal year 2018-2019.

PFC is also one of the promoters in Energy Efficiency Services Limited ([[EESL]]), with [[NTPC Limited|NTPC]], [[Power Grid Corporation of India|Powergrid]] and REC being the other promoters. [[EESL]] is currently implementing of world's largest energy efficiency portfolio and has been instrumental in energy savings of more than 50 tWh/year and an estimated GHG reduction of more than 40 million tonnes of CO<sub>2</sub> per year.

==Awards & recognitions==

{| class="wikitable"
|-
| 1
| MOU Excellence Award 2009-10
| January 2012
|-
| 2
| KPMG-Infrastructure Today Award 2011
| December 2011
|-
| 3
| Dainik Bhasker India Pride PSU Award 2011
| October 2011
|-
| 4
| SCOPE Commendation Certificate 2009-10
| April 2011
|-
| 5
| Global HR Excellence Awards 2011
| February 2011
|-
| 6
| KPMG-Infrastructure Today Award 2008
| December 2008
|-
| 7
| India Power Award 2008
| November 2008
|-
| 8
| Golden Peacock Award 2007
| September 2007
|-
| 9
| [[Navratnas|Navratna Company]]
| June 2007
|-
| 10
| [[Maharatna Status]]
| 12 October 2021
|-
| 11
| [[Probable Bonus share]]
| March 2022
|}

==Notes==
<references />

==External links==
*{{Official website|http://pfc.gov.in/}}

{{Energy Ministries and Departments of India}}
{{Public Sector Undertakings in India}}
{{Nifty 200 companies}}

{{authority control}}

[[Category:Government-owned companies of India]]
[[Category:Indian companies established in 1986]]
[[Category:Financial services companies of India]]
[[Category:Companies based in New Delhi]]
[[Category:Electric power in India]]
[[Category:1986 establishments in Delhi]]
[[Category:Companies listed on the National Stock Exchange of India]]
[[Category:Companies listed on the Bombay Stock Exchange]]

Latest revision as of 06:48, 13 November 2024

Power Finance Corporation Ltd.
Company typePublic
NSE: PFC
BSE: 532810
IndustryFinancial services
GenreFinancial Services
FoundedJuly 1986; 38 years ago (1986-07)
Headquarters
New Delhi
,
India
Area served
India
Key people
Parminder Chopra (Chairman & MD)
ProductsRupee Term Loan, Foreign Currency Loan, Short Term Loan
ServicesFinancial Consulting, Financial Products, Investment Banking, Loan Management, Linkage Management
RevenueIncrease ₹91,175 crore (US$11 billion) (2024) [1]
Increase ₹33,588 crore (US$4.0 billion) (2024)[1]
Increase ₹26,461 crore (US$3.2 billion) (2024)[1]
Total assetsIncrease ₹1,038,877 crore (US$120 billion) (2024)[1]
Total equityIncrease ₹134,288 crore (US$16 billion) (2024)[1]
OwnerGovernment of India
Number of employees
484 (2020)
SubsidiariesRural Electrification Corporation Limited
Websitepfcindia.com

Power Finance Corporation Ltd. (PFC) is an Indian public sector company engaged in infrastructure finance activities. Established in 1986, it provides financing for the Indian power sector and is under the admistrative control of the Ministry of Power, Government of India.[2] PFC was classified as a 'Maharatna' enterprise on 12 October 2021.

Initially wholly owned by the Government of India, the company issued an IPO in January 2007. The issue was oversubscribed by over 76 times, which is one of the largest for an IPO of any Indian CPSU.[3] PFC is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It is also an ISO 9001:2000 certified company[4] and enjoys the status of Maharatna PSU in India. On 6 December 2018, the Government of India approved PFC's takeover of REC.[5] The acquisition transaction was completed on 28 March 2019 with PFC paying almost Rs. 145 million to the government of India for the 52.63% stake.

Organization structure

[edit]

The corporation is headed by the chairman and managing director, who at present is Parminder Chopra.[6] The company has three wings, each headed by a Functional Director namely the Commercial Division, Projects Division and Finance Division. The Commercial Division looks after the credit appraisal and categorization of borrower entities, power sector reforms, review and analysis. The Projects Division controls the operation in various states and project appraisal. Finance Division looks after the Fund Mobilization and Disbursement. PFC is a lean organization. The number of employees as on 31 March 2023 was around 550.

Borrowings

[edit]

Most of the PFC's funds are raised through rupee-denominated bonds, which have the highest credit rating in the Indian market and in international markets, rated at par with the Indian sovereign rating. It also borrows short term and long term from various banks and other financial institutions, and raised external commercial borrowings (ECB) through private placement in the US market. PFC is one of the institutions eligible for raising funds through capital gain tax bonds under section 54EC of the Income Tax Act, 1961.

Over the last two-three years, PFC has focused on diversifying its borrowing portfolio by raising funds from international markets. In November 2017, PFC launched its main Green Bond issue for US$400 million, which witnessed the tightest ever spread for any Indian Issuer for its maiden 10-year issue. In the first quarter of the Financial year 2020, PFC has raised about US$1.3 billion from the international markets. Out of this US$1 billion was raised in June 2019, which was the first dual and largest USD bonds transaction for Govt owned Indian NBFC. This was also PFC's first borrowing from the international markets after the successful acquisition of REC Limited.

In 2017, PFC was granted approval by the Ministry of Finance, Govt. of India, to raise funds under section 54EC of the Income Tax Act 1961. PFC was the first company to obtain such approval post the budget announcement in February 2017. PFC has raised more 14.7 million dollars under these bonds since their launch in 2017.

Operations

[edit]

Since its inception, PFC has been providing financial assistance to power projects across India including generation, transmission, distribution and RM&U projects. Recently, it began financing other infrastructure projects which have backward linkages to the power sector like coal mine development, fuel transportation, oil & gas pipelines, etc. The borrower profile includes State Electricity Boards, State sector power utilities, Central sector power utilities and Private sector companies. PFC is also the nodal agency for the implementation of the ambitious Ultra Mega Power Plants (UMPPs) and the R-APDRP program[7][8] of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.

Subsidiary and Associate Companies

[edit]

PFC presently has ten subsidiaries, seven of which are SPVs (shell companies) to implement the UMPP project:

  • PFC Consulting Ltd. (PFCCL) is a wholly owned subsidiary handling fee based services.
  • Orissa Integrated Power Limited
  • Coastal Karnataka Power Limited
  • Coastal Tamil Nadu Power Limited
  • Coastal Maharashtra Power Limited
  • Jharkhand Integrated Power Limited
  • Akaltara Power Limited

After the purchase of the entire holding of the Govt. of India in Rural Electrification Corporation Limited, became a subsidiary of PFC in the fiscal year 2018-2019.

PFC is also one of the promoters in Energy Efficiency Services Limited (EESL), with NTPC, Powergrid and REC being the other promoters. EESL is currently implementing of world's largest energy efficiency portfolio and has been instrumental in energy savings of more than 50 tWh/year and an estimated GHG reduction of more than 40 million tonnes of CO2 per year.

Awards & recognitions

[edit]
1 MOU Excellence Award 2009-10 January 2012
2 KPMG-Infrastructure Today Award 2011 December 2011
3 Dainik Bhasker India Pride PSU Award 2011 October 2011
4 SCOPE Commendation Certificate 2009-10 April 2011
5 Global HR Excellence Awards 2011 February 2011
6 KPMG-Infrastructure Today Award 2008 December 2008
7 India Power Award 2008 November 2008
8 Golden Peacock Award 2007 September 2007
9 Navratna Company June 2007
10 Maharatna Status 12 October 2021
11 Probable Bonus share March 2022

Notes

[edit]
  1. ^ a b c d e "Balance Sheet 31.03.2024".
  2. ^ https://pfcindia.com/DocumentRepository/ckfinder/files/Investors/Investor_Presentations/Investor%20Presentation%20Q1%20FY%2024.pdf [bare URL PDF]
  3. ^ "PFC's IPO over-subscribed 73 times - Economic Times". Economictimes.indiatimes.com. 7 February 2007. Retrieved 29 November 2012.
  4. ^ Chennai Online, 5 Aug 2004 Archived 24 December 2009 at the Wayback Machine
  5. ^ Singh, Sarita (6 December 2018). "Cabinet approves REC takeover by Power Finance Corporation". The Economic Times. Retrieved 30 May 2019.
  6. ^ www.ETEnergyworld.com. "PFC appoints Ravindra Singh Dhillon as CMD from June 1 - ET EnergyWorld". ETEnergyworld.com. Retrieved 11 June 2020.
  7. ^ About R-APDRP
  8. ^ About R-APDRP from PFC website
[edit]
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