Maharatna Status to Power Finance Corporation
Central Government has given “Maharatna” status to Power Finance Corporation (PFC). PFC has become the 11th state-owned entity in India to enter the Maharatna category.
PFC now joins the ranks of other companies like ONGC, Steel Authority of India Limited (SAIL), BHEL and Indian Oil Corporation. PFC is the largest infrastructure company of India.
Significance of the status
- This enhanced status will enable PFC:
- To make quality investments,
- To form financial joint ventures and wholly-owned subsidiaries
- To oversee mergers & acquisitions within India as well as abroad.
- PFC will also be able to achieve the government’s agenda of funding under National Infrastructure Pipeline and its aim to achieve 40 per cent green energy target by 2030.
Which company gets Maharatna Status?
Maharatna status is accorded to a company that has recorded more than net profit of Rs 5,000 crore for three consecutive years or average annual turnover of Rs 25,000 crore for three years. In order to get the status, company should have the average annual net worth of Rs 15,000 crore for three years. Company should also have global footprints or operations.
PFC was incorporated in 1986. It works under the jurisdiction of the Union Power Ministry. It is the financial backbone of Power Sector in India. Its net worth as on 30 September 2018 is Rs 383 billion. According to the Department of Public Enterprises Survey for FY 2017-18, PFC is the 8th highest profit making Central Public Sector Enterprise (CPSE). It is India’s largest NBFC as well as largest infrastructure finance company.
Category: Economy & Banking Current Affairs - 2022
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