Government accords ‘Maharatna’ status to Power Finance Corporation; List of Maharatna companies in India

The  Maharatna status to the state-owned Power Finance Corporation (PFC) will impart enhanced powers to the board of PFC while taking the financial decisions.

Created On: Oct 13, 2021 12:33 IST
Maharatna status to PFC
Maharatna status to PFC

The Government of India has accorded ‘Maharatna’ Status to state-owned Power Finance Corporation (PFC). As per the statement by the company, the move will pave the way for the company’s greater financial and operational efficiency.

PFC in an official statement said, “Government of India accorded the prestigious ‘Maharatna’ status to state-owned Power Finance Corporation, thus giving PFC greater operational and financial autonomy.”

An order to this effect was issued on October 12, 2021, by the Department of Public Enterprises, under the Ministry of Finance.

RK Singh, the Union Power, and New & Renewable Energy Minister congratulated PFC and said that the conferment of ‘Maharatna’ status is the reflection of the central government’s confidence in PFC’s strategic role in the overall development of the power sector and the endorsement of its sterling performance.

Why ‘Maharatna’ status is significant for PFC?

The grant of Maharatna status to Power Finance Corporation will impart enhanced powers to the board of PFC while taking the financial decisions.

The new recognition will enable Power Finance Corporation to offer competitive financing for the power sector. It will go a long way in making available affordable and reliable ‘Power for All 24x7”.

With the enhanced power of Maharatna, PFC will be able to diversify its operations to further accelerate its business growth going forward and leverage the position for achieving the government’s objectives for the overall development of the power sector.

Maharatna CPSE Board: Details

The Board of Mahartna CPSE (Central Public Sector Enterprises) can make the equity investments to undertake the financial joint ventures and the wholly-owned subsidiaries. It can also undertake mergers and acquisitions in India and abroad, subject to a ceiling of 15% of the net worth of the concerned CPSE, limited to Rs. 5,000 crores in one project.

The board is also able to structure and implement the schemes related to personnel and human resource management and training. They can also enter into technology joint ventures and other strategic alliances.

About Power Finance Corporation

Power Finance Corporation was incorporated in 1986. It is the largest infrastructure finance company which is dedicated to the power sector under the administrative control of the Ministry of Power.

Why PFC has been granted ‘Maharatna’ status?

The Chairman and Managing Director of PFC, RS Dhillon said in a statement that the company has received ‘Maharatna’ status because of its exceptional financial performance during the past 3 years.

Despite COVID-19, the company witnessed the highest-ever annual sanctions and the disbursement to the power sector to the tune of Rs. 1.66 lakh crores and Rs. 88,300 crores during 2020-21, and the highest-ever profit of Rs. 8,444 crores in FU 2020-21.

List of Maharatna companies in India

There is a total of 11 companies in India that have been granted ‘Maharatna’ status. Power Finance Corporation (PFC) is the 11th firm to join the list.

S. No.

Companies

1.

Bharat Heavy Electricals Limited (BHEL)

2.

Bharat Petroleum Corporation Limited (BPCL)

3.

Coal India Limited (CIL)

4.

Gas Authority of India Limited (GAIL)

5.

Hindustan Petroleum Corporation Limited (HPCL)

6.

Indian Oil Corporation Limited (IOCL)

7.

National Thermal Power Corporation (NTPC)

8.

Oil and Natural gas Corporation (ONGC)

9.

Power Grid Corporation of India

10.

Steel Authority of India Limited (SAIL)

11.

Power Finance Corporation (PFC)

 

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