Meet India's new Maharatna company: Power Finance Corporation

The Maharatna status will further enable the Power Finance Corporation to offer competitive financing for the power sector, which may boost efforts to provide affordable round-the-clock power for all.

State-owned Power Finance Corporation has been accorded 'Maharatna' status by the government.

The Maharatna status is given to companies that can raise their investment ceiling of Rs 5,000 crore and can invest up to 15% of their net worth in a project. 

The Maharatna status is accorded to central public sector enterprises that are listed on the stock exchange and have minimum prescribed public shareholding under SEBI regulations.

Government data suggests that despite Coronavirus, the Power Finance Corporation recorded its highest-ever annual sanctions worth Rs 1.66 lakh crore and disbursements to the power sector worth Rs 88,300 crore during FY 2020-21. 

PFC also registered its highest ever profit of Rs 8,444 crore in FY 2020-21

The power ministry, in a statement, said that the Maharatna status for the PFC will impart enhanced powers to the Board while taking financial decisions. 

The Power Finance Corporation board can now also enter into technology joint ventures and other strategic alliances.

The Maharatna status will further enable the Power Finance Corporation to offer competitive financing for the power sector, which may boost efforts to provide affordable round-the-clock power for all.

The enhanced powers help PFC pushing the Narendra Modi government's agenda of funding under the National Infrastructure Pipeline. Besides, it will facilitate the national commitment of 40 per cent green energy by 2030 and effective implementation of the revamped distribution sector scheme worth over Rs 3 lakh crore.

List of India's other 'Maharatnas'

1. Bharat Heavy Electricals Limited

2. Bharat Petroleum Corporation Limited

3. Coal India Limited

4. GAIL (India) Limited

5. Hindustan Petroleum Corporation Limited

6. Indian Oil Corporation Limited

7. NTPC Limited

8. Oil & Natural Gas Corporation Limited

9. Power Grid Corporation of India Limited

10. Steel Authority of India Limited