Power Finance Corporation Limited is a noteworthy Indian financial institution that was founded in the year 1986 and is the financial support behind the Indian power sector. There are several Power Finance Corporation financial services that are specially tailored for the needs of the power sector. The organization has a healthy net worth and was initially owned fully by the Government of India. An IPO (initial public offering) was issued in January 2007. The issue was oversubscribed by more than 76 times which is the largest for any Indian Company IPO at that point of time. PFC is listed on the Bombay Stock Exchange and National Stock Exchange.
About Power Finance Corporation
The company has been the recipient of several prestigious laurels including the KPMG-Infrastructure Today Award 2008 for its role in the development of the power sector. It is also an ISO 9001: 2000 certified organization and enjoys the Navratna Company status in India.
The Corporation is spearheaded by the Chairman & Managing Director M K Goel. There are three wings headed by functional directors and these are the commercial, projects and finance & financial operations divisions. The commercial division takes care of credit appraisal and categorization of borrower entities, analysis, review and power sector reforms while the projects division controls operations throughout several states along with project appraisal. The Finance and Financial Operations division looks into the fund mobilization and disbursement functionalities. The organization is lean and does not have more than 450 employees. A majority of PFC funds are raised through rupee denominated bonds. PFC bonds enjoy high credit ratings in the market while they are rated at par with Indian Sovereign ratings in global markets. Short and long term borrowings are also made from several banks and other financial institutions while External Commercial Borrowings (ECB) have also been made through private placements in United States.
Power Finance Corporation Services
Power Finance Corporation has been offering financial assistance towards several power projects across India including in fields of transmission, generation, distribution and RM&U projects. It has also ventured into financing of other infrastructural projects which are related to the power sector including fuel transportation, coal mine development, gas and oil pipelines and so on. The borrower profile includes the likes of the State Electricity Boards, Central & State sector power utilities and private sector organizations.
PFC also functions as the nodal agency for implementing big ticket ultra mega power plants and the Government of India’s R-APDRP programme. The company also rates different state power utilities on their performance. It also offers consultancy and capital advisory services to organizations in this sector in tandem with overall funding operations.
Subsidiary Organizations
Power Finance Corporation banking services aside, several other functions are carried out by its nine subsidiaries. PFC Consulting Limited is a wholly owned entity taking care of fee based services and advisory. Other subsidiaries include Coastal Maharashtra Power Limited, Coastal Karnataka Power Limited, Orissa Integrated Power Limited, Coastal Tamil Nadu Power Limited, Jharkhand Integrated Power Limited and Akaltara Power Limited which are shell companies created for implementing ultra mega power projects.
Vision & Mission
PFC aims at being the preferred financial institution offering competitive services and products which are also affordable along with efficient and internationally integrated servicing and sourcing, partnering Indian power sector reforms. It also aims at enhancing value for all stakeholders by promoting efficient investments in the power and allied sectors both in India and abroad.
The organization aims at being a flexible, dynamic, futuristic, evolving, socially responsible and trustworthy entity which is sensitive to the interests of customers and stakeholders along with keeping an eye on sustainability and profitability at all times. Integrity in operations and total transparency in all business dealings are two core values followed at the organization as well. It also aims at being a premier institutional partner for power and allied infrastructure sectors in India and also overseas across the entire value chain. To this end, there are not only Power Finance Corporation loans but also other services which are geared towards offering holistic solutions across all levels.
Power Finance Corporation financial services online
There are several Power Finance Corporation loan schemes available including takeout financing, buyer’s line of credit, asset acquisition and debt refinancing policy. There is the bridge loan and credit facilities for purchase of power through power exchange which is a unique Power Finance Corporation loan advantage offered to customers. There are interest free Power Finance Corporation loans online for studies and consultancies in addition to financing for fuel supply projects and equipment manufacturing. There is funding provided for energy saving projects along with wind power projects and coal imports.
Other short term loans are also available along with project term loans and rupee short term loans against identified receivables from discoms. There is a solar PV policy for the private sector along with funding for grid connected solar thermal private sector power generation projects and underwriting of debt policies.
New Business Initiatives
The organization has also forayed into several new business areas including financing of projects in the renewable energy sector in tandem with acquisition of advisory services. It also finances equipment manufacturing facilities and development of fuel sources in addition to distribution projects geared towards the power sector. Consortium lending is another new area being explored by the organization in recent times.
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