PFC was set up on 16th July 1986 as a Financial Institution (FI) dedicated to Power Sector financing and committed to the integrated development of the power and associated sectors. The Corporation was notified as a Public Financial Institution in 1990 under Companies Act, 1956.
The Corporation is registered as a Non Banking Financial Company with the Reserve Bank of India (RBI). RBI, vide its revised Certificate of Registration no. B-14.00004 dated July 28, 2010 classified the company as an ‘Infrastructure Finance Company (NBFC-ND-IFC)’.
PFC, which has entered its Silver Jubilee Year in 2010, is a Schedule-A, Nav-Ratna CPSE (conferred by Govt. of India on 22nd June, 2007) in the Financial Service Sector, under the administrative control of the Ministry of Power. Its Registered and Corporate Offices are at New Delhi.
PFC was incorporated with an objective to provide financial resources and encourage flow of investments to the power and associated sectors, to work as a catalyst to bring about institutional improvements in streamlining the functions of its borrowers in financial, technical and managerial areas to ensure optimum utilization of available resources and to mobilize various resources from domestic and international sources at competitive rates.
Products & Services
PFC's product portfolio comprise of Financial Products and Services like Project Term Loan, Equipment Lease Financing, Discounting of Bills, Short Term Loan, and Consultancy Services etc. for various Power projects in Generation, Transmission, and Distribution sector as well as for Renovation & Modernization of existing power projects.
PFC's priorities include not only accelerating the pace of existing business of funding generation, transmission and distribution projects but also to exploit the new opportunities available in the area of consortium lending, lending to Capital equipment manufacturers and fuel supply projects and related infrastructure development projects, renewable energy and CDM, and equity funding.
In addition, PFC also provides technical, advisory and consultancy services related activities through its subsidiary company namely PFC Consulting Limited.
Government of India Initiatives
Ultra Mega Power Projects (UMPPs)
PFC has been designated as the nodal agency by Ministry of Power (MoP), Government of India (GoI), for development of Ultra Mega Power Projects (UMPPs), with a capacity of atleast 3,500 MW each under Tariff based competitive bidding route. Ministry of Power is the ‘facilitator’ for the development of these UMPPs while Central Electricity Authority (CEA) is the ‘Technical Partner’. Being large in size, these projects will meet the power needs of the country through transmission of power on regional and national grids.
Restructured Accelerated Power Development and Reform Programme (RAPDRP)
Ministry of Power, Government of India, has launched the Restructured Accelerated Power Development and Reforms Programme (R-APDRP) in July 2008 with focus on establishment of base line data, fixation of accountability, reduction of AT&C losses upto 15% level through strengthening & up-gradation of Sub Transmission and Distribution network and adoption of Information Technology during XI Plan. Project area shall be towns and cities with population of more than 30,000 (10,000 in case of special category states) as per census 2001. Projects under the scheme shall be taken up in two parts. Part-A shall include the projects for establishment of baseline data and IT applications for energy accounting/auditing & IT based consumer service centres. Part-B shall include regular distribution strengthening projects and will cover system improvement, strengthening and augmentation etc.
PFC has been designated as the nodal agency to operationalise the programme and shall act as a single window service under R-APDRP. As nodal agency PFC shall receive a fee as well as the reimbursement of expenditure in implementation of the progrmme as per the norms to be decided by the RAPDRP Steering Committee.
Independent Transmission Projects (ITPs)
Ministry of Power has also initiated Tariff Based Competitive Bidding Process for development and strengthening of Transmission system through private sector participation.
The objective of this initiative is to develop transmission capacities in India and to bring in the potential investors after developing such projects to a stage having preliminary survey work, identification of route, preparation of survey report, initiation of process of land acquisition, initiation of process of seeking forest clearance, if required and to conduct bidding process etc.
PFC Consulting Limited (PFCCL), a wholly owned subsidiary of PFC, has been nominated as ‘Bid Process Coordinator’ by Ministry of Power, Govt. of India for the development of independent transmission projects.
Distribution Reforms, Upgrades & Management (DRUM)
The Distribution Reform, Upgrades and Management (DRUM) project is an Indo-US initiative designed jointly by the Ministry of Power (MoP) and United States Agency for International Development (USAID) that complements the MoP’s Accelerated Power Development and Reform Programme (APDRP). DRUM addresses the critical development challenge of providing commercially viable and dependable power.
The overall goal of the DRUM project is to demonstrate commercially viable electricity distribution systems that provide reliable power of sufficient quality to consumers and to establish a commercial framework and a replicable methodology adopted by Indian Financial Institutions for providing non-recourse financing for DRUM activities and programmes.
PFC has been appointed as Principal Financial Intermediary responsible for technical assistance and training under DRUM components. The roles and responsibilities of PFC for DRUM project are to i) provide management and implementation support, ii) co-ordinate with all stakeholders, iii) act as a financial intermediary and banker for controlling and directing funds (loans and grants) and iv) design mechanism for leveraging resources of other FIs/ Bankers.
Delivery through Decentralised Management (DDM)
DDM is a scheme sponsored by Ministry of Power with the objective of showcasing participatory models of excellence in distribution predominantly in rural area, which are sensitive to the local aspirations and requirements. PFC has been appointed as carrier agency for successful implementation of DDM Schemes.