Power Finance Corporation
The government has given ‘Maharatna’ status to the public sector Power Finance Corporation. This move will increase efficiency along with financial and operational autonomy of the company. The company said in a statement, the government has given Maharatna status to PFC. This will increase the autonomy and efficiency at the financial and operational level of the company.
The Department of Public Enterprises, which comes under the Ministry of Finance, issued an order to this effect. PFC was formed in 1986. It is the largest provider of infrastructure financing for the power sector. With the status of Maharatna, the scope of financial decisions with the board of directors of the company will increase.
This will be the benefit of getting Maharatna status
The board of directors of a ‘Maharatna’ company can decide on equity investment in financial joint ventures and wholly subsidiaries. Also can decide on mergers and acquisitions in the country and abroad. However, the limit for this is limited to 15 percent of the net worth of the company concerned. This can be up to a maximum of Rs 5,000 crore in a project.
Also, the Board of Directors can implement plans related to human resource management and training. They can join joint ventures or strategic alliances at the technology level.
Union Minister of Power and New & Renewable Energy RK Singh congratulated PFC. He said that the Maharatna status of PFC shows that the government has full confidence in the company’s strategic role in the overall development of the power sector.
PFC Chairman and Managing Director RS Dhillon said the company’s financial performance in the last three years has been excellent and that is why it has got Maharatna status.
These companies have got Maharatna status
At present, the companies which have got Maharatna status are Bharat Heavy Electrical Limited, Bharat Petroleum Corporation Limited, Coal India Limited, GAIL (India) Limited, Hindustan Petroleum Corporation Limited, Indian Oil Corporation Limited, NTPC Limited, Oil and Natural Gas Corporation Limited, POWERGRID Corporation of India Limited and Steel Authority of India Limited.
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