Background

Power Finance Corporation Ltd (PFC) was incorporated in 1986 as a dedicated Development Financial Institution and a NBFI to promote India’s power sector development. The company commenced operations in 1988 as a part of the government’s initiative to enhance funding of power projects in India. The Corporation was notified as a Public Financial Institution in 1990. Initially, the company provided funding to power projects for SEBs and power departments and in 1997 began financing power projects in the private sector. In 1999, PFC launched consultancy services in order to provide consultancy to both state owned and private power utilities for the power and financial sectors.

Business Profile

PFC was established with the sole objective of providing necessary funds in time at competitive rates for implementation of power projects vis-a-vis development of various power utilities and overall power sector in the country. The company provides both fund and non-fund based support to state power utilities, state power/electricity departments, central power utilities, joint sector power utilities, private sector power utilities, co-operative societies, municipal bodies and power equipment manufacturers. Term loans, however, continues to be the principal product of the company. PFC works closely with state governments & state power sector utilities and assists them to undertake reforms within their organisations. PFC is also engaged in providing Consulting and Advisory Services in the power and financial sectors to more than 35 clients spread across over 20 states in the country through its fully owned subsidiary PFC Consulting Ltd. The range of services offered by the company include restructuring and reform activities, and assistance to reformed entities; financial management of resources including mobilization & accounting systems etc.