Power Finance Corporation (PFC) Ltd. Company Profile: Products,Promoters and Clients
Power Finance Corporation (PFC) Ltd.
Established on July 16th, 1986, Power Finance Corporation Ltd. (PFC) is a Schedule-A Maharatna CPSE headquartered in New Delhi. Under the Ministry of Power, it was conferred 'Maharatna CPSE' status in October 2021 and recognized as an Infrastructure Finance Company by the RBI in July 2010. PFC plays a pivotal role in India's energy sector, striving to enhance electricity access nationwide. Despite sectoral challenges, PFC maintains a robust loan portfolio and low NPAs, ensuring continued financial stability. As a Systemically Important Non-Deposit taking NBFC, registered with the RBI, PFC specializes in providing financial assistance to India's power sector, contributing significantly to the nation's economic growth.
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Q1. What are the Product and service offerings of Power Finance Corporation Ltd?
The company specializes in financing infrastructure projects within the Indian Power sector, offering a range of products and services:
A) Fund-Based Products: This includes Project Term loans, Lease financing for equipment procurement, Short/Medium Term loans for equipment manufacturers, Debt refinancing, among others.
B) Non-Fund Based Products: This category encompasses Deferred payment guarantees, Letter of Comfort (LoC), Policies for credit enhancement guarantees, and more.
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Q2. Who are the Promoters/Management of Power Finance Corporation?
Government of India holds a majority of 56% stake in the company.
Ms. Parminder Chopra became the Chairman and Managing Director (CMD) of Power Finance Corporation Limited (PFC) on August 14, 2023, appointed by the Government of India, marking her as the first woman to lead India's largest NBFC. With over 35 years of experience in the Power and Financial Sectors, she spearheaded PFC's Finance Division, achieving record financial performance and playing a crucial role in implementing the INR 1.12 trillion Liquidity Infusion Scheme (LIS) for the power distribution sector.
Ms. Chopra's leadership has seen PFC significantly increase funding for renewable energy projects and support key government initiatives. She holds a Bachelor's degree in Commerce, is a qualified Cost and Management Accountant, and has received prestigious awards for her contributions to the industry.
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Mr. Rajiv Ranjan Jha, aged 56, has been with Power Finance Corporation Limited (PFC) since March 1997. Holding a Bachelor's Degree in Mechanical Engineering from NIT Jamshedpur, Ranchi University, and a Management Diploma from IGNOU, he boasts 33 years of experience. He serves as Executive Director (Projects) since May 27, 2019, overseeing PFC's loan portfolio in the Western Region, including State Sector Coordination in Maharashtra, Gujarat, Madhya Pradesh, Chhattisgarh, and Goa.
Prior roles involved managing PFC's Consortium Lending and Renewable Energy loan portfolios, alongside Project Appraisal for Independent Private Power Projects and Ultra Mega Power Projects. Before joining PFC, he worked at Visakhapatnam Steel Plant from November 1988 to February 1997, focusing on Operation, Maintenance, and Material Planning for their coal-based Captive Power Plant.
Mr. Manoj Sharma, aged 56, is a chartered accountant with an LLB degree. Joining PFC in 1990, he served as Executive Director (In charge) of the Commercial Division before assuming the role of Director (Commercial). With over 30 years of experience in the power sector, he has a diverse skill set encompassing institutional appraisal, legal affairs, taxation, budgeting, audit, financial analysis, and more. He has been involved in all aspects of PFC's loan assets, including policy formulation, appraisal, compliance, monitoring, and resolution mechanisms for stressed accounts. Additionally, he chairs PFC Projects Limited and Jharkhand Infrapower Limited.
Q3. Who are the Clients of the Power Finance Corporation?
As of FY24 Loan asset composition consists of 39% in Conventional Generation, 12% in Renewable Energy, 47% in Transmission & Distribution, and 2% in other sectors. PFC has facilitated approximately 25% of India's total installed renewable energy capacity.
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