PERFORMANCE BUDGET 1998-99 - Ministry of Power

competitions have thrown significant business opportunities for power utilities, both in
central and state sectors, Independent Power Producers (IPPs) and various other
specialised outfits. In the ultimate analysis, this translates into a major avenue of growth
and expansion for development financial institutions like, PFC.
On its part, PFC is exploring various opportunities which would not only expand business
of PFC but also enable it to play a vital role in the Power Sector Development of the
country. PFC has considered the following business options:-
(a) Leasing of Power equipments.
(b) Bills discounting.
(c) Lending to Private sector projects and Central Utilities.
(d) Loan syndication.
(e) Financial advisory services.
In addition to this the other vital role of PFC are:-
- Promoting R & M and upgradation of Thermal and Hydro Generation Plants.
- Completion of ongoing generations Projects
- Incorporating effective electricity accounting
- Design of distribution management system to improve revenue collection.
- Capacitor installation, metering and loss reductions
- Promoting Futuristic technologies - increasing and Promote R & D
- Loss reduction in T & D, Thermal and Hydro Plants
- Effective investigations and investment planning to reduce IDC.
11.4.4 While considering the Projects for financing, PFC is guided by its Memorandum and Articles
of Association as also its Operational Policy Statement. The norms include appropriate criteria
for financing Power Projects for optimising Power Development and Supply, assigning of
financing resources to match with the physical requirement of Projects in accordance with the
national priorities, appropriate systems for appraisal of the Projects with reference to technoeconomic
aspects, managerial competence for proper implementation, and financial viability
and appropriate concepts and criteria for economic and financial justification of projects and
for monitoring implementation of the projects. In the past few years, the Corporation adopted
a strategy to maximise availability of Power in the short-term and to guide the developments
of the power sector along the optimal path both in the short-term and long-term.
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