Power Finance Corporation
Encyclopedia
Power Finance Corporation Ltd. is an India
n financial institution. Established in 1986, it is the financial back bone of Indian Power Sector. Net worth of the company in the year 2007-2008 was 8688 Crore Indian Rupees. Initially wholly owned by the Govt. of India, the company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times, which is the largest for an IPO of any Indian Company in recent times.http://economictimes.indiatimes.com/PFCs_IPO_over-subscribed_73_times/articleshow/1568852.cms PFC is listed on the Bombay Stock Exchange
(BSE) and the National Stock Exchange
(NSE). The company has been conferred with many prestigious awards, the latest of which is "KPMG-Infrastructure Today Award 2008" for its contribution in development of power sector. It is also an ISO 9001:2000 certified company and enjoys the status of Navratna Company
in India.
s (ECB) through private placement in US market.
(UMPPs) and the R-APDRP programme http://pfc.gov.in/apdrp/apdrp2.html of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...
n financial institution. Established in 1986, it is the financial back bone of Indian Power Sector. Net worth of the company in the year 2007-2008 was 8688 Crore Indian Rupees. Initially wholly owned by the Govt. of India, the company issued an IPO in January, 2007. The issue was oversubscribed by over 76 times, which is the largest for an IPO of any Indian Company in recent times.http://economictimes.indiatimes.com/PFCs_IPO_over-subscribed_73_times/articleshow/1568852.cms PFC is listed on the Bombay Stock Exchange
Bombay Stock Exchange
The Bombay Stock Exchange is a stock exchange located on Dalal Street, Mumbai and is the oldest stock exchange in Asia. The equity market capitalization of the companies listed on the BSE was 1.63 trillion as of December 2010, making it the 4th largest stock exchange in Asia and the 8th largest...
(BSE) and the National Stock Exchange
National Stock Exchange of India
The National Stock Exchange is a stock exchange located at Mumbai, Maharashtra, India. It is the 9th largest stock exchange in the world by market capitalization and largest in India by daily turnover and number of trades, for both equities and derivative trading. NSE has a market capitalization...
(NSE). The company has been conferred with many prestigious awards, the latest of which is "KPMG-Infrastructure Today Award 2008" for its contribution in development of power sector. It is also an ISO 9001:2000 certified company and enjoys the status of Navratna Company
Navratnas
Navratna was the title given originally to nine Public Sector Enterprises identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become...
in India.
Organization Structure
The Corporation is headed by the Chairman and Managing Director; who at present is Mr Satnam Singh. The company has three wings, each headed by a Functional Director namely, Institutional Development & Administration(IDA) Division, Projects Division and Finance & Financial Operations division. The IDA 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 & Financial Operations Division looks after the Fund Mobilization and Disbursement. PFC is a lean organization. The number of employees during year 2007-2008 were 309.Borrowings
The major part of PFC's funds are raised through Rupee denominated bonds. PFC bonds enjoy the highest credit rating in the Indian market and in international markets, they are rated at par with the Indian Sovereign rating. It also borrows short term and long term from various banks and other Financial Institutions. It has also raised External Commercial BorrowingExternal Commercial Borrowing
An external commercial borrowing is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs ....
s (ECB) through private placement in US market.
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 has forayed into financing of 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 PlantsUltra Mega Power Plants (India)
Ultra Mega Power projects are a series of ambitious power projects planned by the Government of India. With India being a country of chronic power deficits, the Government of India has planned to provide 'power for all' by the end of the eleventh plan . This would entail the creation of an...
(UMPPs) and the R-APDRP programme http://pfc.gov.in/apdrp/apdrp2.html of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.
Subsidiary Companies
PFC presently has nine subsidiary companies. PFC Consulting Ltd. (PFCCL) is a wholly owned subsidiary handling fee based services. The six other companies, namely Coastal Karnataka Power Limited, Coastal Tamil Nadu Power Limited, Coastal Maharashtra Power Limited, Orissa Integrated Power Limited, Jharkhand Integrated Power Limited and Akaltara Power Limited, are SPVs (Shell Companies) created for implementing the Ultra Mega Power Projects.Awards & recognitions
| No. | Recognition | Year |
|---|---|---|
| 1 | KPMG-Infrastructure Today Award 2008 | December 2008 |
| 2 | India Power Award 2008 | November 2008 |
| 3 | Golden Peacock Award 2007 | September 2007 |
| 4 | Navratna Company Navratnas Navratna was the title given originally to nine Public Sector Enterprises identified by the Government of India in 1997 as "public sector companies that have comparative advantages", giving them greater autonomy to compete in the global market so as to "support [them] in their drive to become... |
June 2007 |