Power Finance Corporation


Power Finance Corporation Ltd. (P. F. C.) is an Indian financial institution under the ownership of Ministry of Power, Government of India. Established in 1986, it is the financial backbone of Indian Power Sector. PFC's Net worth as on 30 September 2018 is INR 383 billion.[2] PFC is the 8th highest profit making Central Public Sector Enterprise (CPSE) as per the Department of Public Enterprises Survey for FY 2017–18. PFC is India's largest NBFC and also India's largest infrastructure finance company. Government has raised status of PFC from ' Navratna' to 'Maharatna' company on 12 October 2021.

Power Finance Corporation Ltd.
TypeGovernment Corporation
BSE: 532810
IndustryFinancial services
GenreFinancial Services
FoundedJuly 1986
Area served
Key people
Ravinder Singh Dhillon ,(Chairman & MD)
ProductsRupee Term Loan, Foreign Currency Loan, Short Term Loan
ServicesFinancial Consulting, Financial Products, Investment Banking, Loan Management, Linkage Management
RevenueIncrease71,700 crore (US$9.4 billion) (2021) [1]
Increase19,884 crore (US$2.6 billion) (2021)[1]
Increase15,709 crore (US$2.1 billion) (2021)[1]
Total assetsIncrease775,707 crore (US$100 billion) (2021)[1]
Total equityIncrease60,767 crore (US$8.0 billion) (2021)[1]
OwnerGovernment of India (52.63%)
Number of employees
484 (2020)
ParentMinistry of Power , Government of India

Initially wholly owned by the Government of India, the company issued an initial public offering in January, 2007. The issue was oversubscribed by over 76 times, which is one of the largest for an IPO of any Indian company.[3] PFC is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). It is also an ISO 9001:2000 certified company[4] and enjoys the status of Navratna Company in India. On 6 December 2018, the Government of India approved PFC's takeover of REC.[5] The acquisition transaction was completed on 28 March 2019 with PFC paying almost Rs. 14,500 Crs to the Govt. of India for the 52.63% stake.

Organization structureEdit

The corporation is headed by the chairman and managing director, who at present is Ravinder Singh Dhillon.[6] 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 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 is 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 the 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 the 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 the 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 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 the 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[7][8] of Govt. of India. The company also has the mechanism of rating different state Power Utilities on its performance.

Subsidiary and Associate CompaniesEdit

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 the purchase of the entire holding of the 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 an estimated GHG reduction of more than 40 million tonne CO2/year.

Awards & recognitionsEdit

1 MOU Excellence Award 2009-10 January 2012
2 KPMG-Infrastructure Today Award 2011 December 2011
3 Dainik Bhasker India Pride PSU Award 2011 October 2011
4 SCOPE Commendation Certificate 2009-10 April 2011
5 Global HR Excellence Awards 2011 February 2011
6 KPMG-Infrastructure Today Award 2008 December 2008
7 India Power Award 2008 November 2008
8 Golden Peacock Award 2007 September 2007
9 Navratna Company June 2007
10 Maharatna Status 12 October 2021
11 Probable Bonus share March 2022


  1. ^ a b c d e "Balance Sheet 31.03.2020".
  2. ^ PFC Investor Presentation Quarter 2 FY 2018–19
  3. ^ "PFC's IPO over-subscribed 73 times - Economic Times". Economictimes.indiatimes.com. 7 February 2007. Retrieved 29 November 2012.
  4. ^ Chennai Online, 5 Aug 2004 Archived 24 December 2009 at the Wayback Machine
  5. ^ Singh, Sarita (6 December 2018). "Cabinet approves REC takeover by Power Finance Corporation". The Economic Times. Retrieved 30 May 2019.
  6. ^ www.ETEnergyworld.com. "PFC appoints Ravindra Singh Dhillon as CMD from June 1 - ET EnergyWorld". ETEnergyworld.com. Retrieved 11 June 2020.
  7. ^ About R-APDRP
  8. ^ About R-APDRP from PFC website

External linksEdit

  • Official website