Power Finance Corporation

The corporation is headed by the chairman and managing director, who at present is Ravinder Singh Dhillon.[7] The company has three wings, each headed by a Functional Director namely, Commercial Division, Projects Division and Finance & Financial Operations division. The Commercial Division looks after the credit appraisal and categorization of borrower entities, power sector reforms, review and analysis. The Projects Division controls the operation in various states and project appraisal. Finance s Division looks after the Fund Mobilization and Disbursement. PFC is a lean organization. The number of employees as on 31 March 2019 was around 500.

The major part of PFC's funds are raised through Rupee-denominated bonds. PFC bonds enjoy the highest credit rating in the Indian market and in international markets; they are rated at par with the Indian Sovereign rating. It also borrows short term and long term from various banks and other financial institutions. It has also raised external commercial borrowings (ECB) through private placement in US market. PFC is one of the institutions eligible for raising funds through capital gain tax bonds under section 54EC of the Income Tax Act, 1961.

Over the last two-three years PFC has focused on diversifying its borrowing portfolio by raising funds from international markets. In November 2017, PFC launched its main Green Bond issue for US$400 million, which witnessed the tightest ever spread for any Indian Issuer for its maiden 10-year issue. In the first quarter of Financial year 2020, PFC has raised about US$1.3 billion from the international markets. Out of this US$1 billion was raised in June 2019, which was the first dual and largest USD bonds transaction for Govt owned Indian NBFC. This was also PFC's first borrowing from the international markets after the successful acquisition of REC Limited.

In 2017, PFC was granted approval by Ministry of Finance, Govt. of India, to raise funds under section 54EC of the Income Tax Act 1961. PFC was the first company to obtain such an approval post the budget announcement in February 2017. PFC has raised more than Rs. 1,000 Crs under these bonds since their launch in 2017.

Since its inception, PFC has been providing financial assistance to power projects across India including generation, transmission, distribution and RM&U projects. Recently, it has forayed into financing of other infrastructure projects which have backward linkages to the power sector like coal mine development, fuel transportation, oil & gas pipelines etc. The borrower profile includes State Electricity Boards, State sector power utilities, Central sector power utilities and Private sector companies. PFC is also the nodal agency for the implementation of the ambitious Ultra Mega Power Plants (UMPPs) and the R-APDRP programme[8][9] of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.

PFC presently has ten subsidiary companies. PFC Consulting Ltd. (PFCCL) is a wholly owned subsidiary handling fee based services. The six other companies namely Orissa Integrated Power Limited, Coastal Karnataka Power Limited, Coastal Tamil Nadu Power Limited, Coastal Maharashtra Power Limited, Jharkhand Integrated Power Limited and Akaltara Power Limited, are SPVs (Shell Companies) created for implementing the flagship Ultra Mega Power Projects. After purchase of the entire holding of Govt of India in Rural Electrification Corporation Limited(REC) in FY 2018-19, REC has now become a subsidiary of PFC.

PFC is also one of the promoters in Energy Efficiency Services Limited (EESL), with NTPC, Powergrid and REC being the other promoters. EESL is currently implementing of world's largest energy efficiency portfolio and has been instrumental in energy savings of more than 50 billion kWh/year and estimated GHG reduction of more than 40 million tonne C_O2/year.

• Official website