Top 10 Public Sector (PSU) Companies in India 2015
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8. Power Finance Corporation
Power Finance Corporation Limited is regarded as the financial backbone of the Indian Power sector.
Image: company website
It was established in 1986 with headquarters in New Delhi and was wholly owned by the government of India before the company issued an IPO in 2007. It is listed on both the BSE as well as the NSE.
It has received ISO 9001:2000 certification and also enjoys the status of a Navratna company.
The main objectives of PFC are as follows:
• Providing financial assistance to power projects
• Focuses on power generation, transmission, distribution and RM&U projects
• Financing infrastructure projects having backward linkages with the power sector
Power Finance Corporation has three wings namely, Commercial Division, Projects Division and Finance and Financial Operations Division with each being headed by a Functional Director. The Commercial Division caters to the credit appraisal, categorization of borrower entities and review and analysis of power sector reforms. The Projects Division controls the operation in various states as well as project appraisal. Mobilization of funds and their timely disbursement is looked after by the Finance and Financial Operations Division.
Power Finance Corporation raises its funds via Rupee denominated bonds. It enjoys the highest credit rating in the Indian as well as the international market and is rated at par with the Indian Sovereign rating. It also borrows from various banks and financial institutions for both short term and long term. The potential borrowers from PFC are the State Electricity Boards, State and Central sector Power Utilities and Private Sector companies. PFC has nine subsidiary companies. One of them is PFC Consulting Limited which is a wholly owned subsidiary that handles fee based services.