Government accords Maharatna Status to Power Finance Corp

Govt. of India accorded ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC), thus giving PFC greater operational and financial autonomy.

An order to this effect was issued by the Department of Public Enterprises, under the Ministry of Finance. Incorporated in 1986, PFC is the largest Infrastructure Finance Company today, 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 & reliable ‘Power For All 24×7’.

Benefits of ‘Maharatna’ status to PFC:

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.

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