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The Centre on Tuesday accorded ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC), giving it greater operational and financial autonomy. Incorporated in 1986, PFC is the largest Infrastructure Finance Company, exclusively dedicated to Power Sector under the administrative control of the Ministry of Power.

This new recognition will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable and reliable ‘Power For All 24x7’, the Ministry of Power said in a statement.  

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 2030 and effective monitoring and implementation of the New Revamped Distribution Sector Scheme with an outlay of more than Rs.3 Lakh crore, Union Minister of Power and New and Renewable Energy RK Singh said. 

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 the Net Worth of the concerned CPSE, 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.

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, PFC witnessed the highest ever annual sanctions and disbursements to the Power Sector to the tune of 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 Power Sector.

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