Govt. accords ‘Maharatna’ status to PSU Power Finance Corporation

The government has accorded the ‘Maharatna’ status to state-owned Power Finance Corporation (PFC), a move that will pave the way for the company’s greater financial and operational efficiency, according to a company statement.

An order to this effect was issued recently by the Department of Public Enterprises, under the Ministry of Finance.

Key Highlights

• Incorporated in 1986, PFC is the largest infrastructure finance company dedicated to the power sector under the administrative control of the Ministry of Power.

• The grant of ‘Maharatna’ status to PFC will impart enhanced powers to PFC’s 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 percent of the networth 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.

SOURCE: Business Standard

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