MoP - Ministry of Power

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DOMESTIC RATING AGENCY Rupee Borrowing
2.0 PFC’S ROLE IN THE POWER SECTOR
2.1 PFC in its role of financial institution funds most of the
power utilities and helps them in completing their
generation projects (Hydro as well as Thermal),
transmission projects and system improvement
projects in time. Distribution networks of number of
towns in various states have been strengthened with
PFC’s financial assistance. PFC has demonstrated
consistent growth in business and profitability.
2.2 PFC has also been providing grant / interest free loans/
soft loans to State Govts./ State power utilities and State
Electricity Regulatory Commissions to carry out reform
related studies.Technical assistance from multilateral
agencies is also channelised as grant to support further
studies. PFC has been conducting workshops/
seminars for dissemination of vital information
concerning the improvements in the power sector and
the emerging requirements, and also conducting
training for power sector personnel.
2.3 PFC provides financing products and fee-based
services to projects related to the power sector. PFC
generally disburses funds either directly to a supplier
or contractor of a project or by way of reimbursement
to the borrower against satisfactory proof of eligible
expenditure on the project. In case of independent
power projects, PFC disburses funds through a trust
and retention account. PFC provides the following
products and services for its clients:
rupee term loans, foreign currency loans, bridge
loans, short term loans and reform-linked
transitional loans;
bill discounting, equipment leasing, buyers’ line of
credit, loans to equipment manufacturers, line of
credit for the import of coal;
debt refinancing;
letters of comfort; and
non-fund based products such as guarantees.
consultancy & advisory services.
Long Term Short Term
CRISIL AAA P1+
ICRA LAAA A1+
International Rating Agency
Moody’s Baa3
Fitch BBB- At par with
“Sovereign” Rating
Standard & Poor’s BBB-
3.0 FINANCING OF POWER PROJECT
3.1 PFC is financing all types of power projects including
Hydro/Thermal and Transmission Projects, Captive &
Co-generation Plants, urban Distribution Systems including
installation of energy meters, renovation and modernisation
of Generation and Transmission projects.
Besides the above, PFC is also financing
installation of Capacitors, Communication & Load
Despatch, Non-Conventional Energy Sources,
Studies, Consultancy & Training and
Computerisation.
PFC is funding all types of power utilities including
State Electricity Boards, State sector power utilities
like state generation, transmission and distribution
corporations/companies, State Power
Development, State Electricity Departments and
other State Departments associated with the
development of power projects. Besides this PFC
is financing the Central sector power utilities, Joint
sector utilities, Cooperative sector power utilities,
Municipal utilities, Private sector utilities and
Independent power producers. The major
beneficiaries of PFC financing continue to be the
state power utilities.
PFC is also complementing the Accelerated
Development & Reform Programme (APDRP)
of Govt. of India by providing funding support to
the power utilities for the schemes identified under
APDRP
3.2 PFC’s Performance(cumulative) during last two decades
(since inception) as on 30th Nov 2007 is as under
Sanctioned Rs.1,56,322 crore
Disbursement Rs. 83,928 crore
3.3 The Corporation earned net profit of Rs.986 crores
during 2006-07.