Untitled - Ministry of Power

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Power inance Corporation Ltd.
The Power Finance Corporation Limited (PFC) was
incorporated in 1986 under the Companies
Act,1956. The mission of PFC is to function as the
prime Development Financial Institution dedicated
to the growth and overall development of the Power
Sector. The borrower-portfolio of PFC comprises of
State Electricity Boards (SEBs), State Generation
Transmission & Distribution Companies,
Municipality-run power utilities and also central,
private, joint sector and co-operative sector power
utilities. The funds provided by the Corporation are
in the nature of additionality to Central Plan
Allocation (in respect of SEBs, etc.) and based on
the merits of the individual projects. The Power
Finance Corporation is a schedule ‘A’ organisation.
PERFORMANCE HIGHLIGHTS
As on 31.03.2004, PFC sanctioned loans of the
order of Rs. 16,472 crores (during 2003-04) for a
wide range of power projects in various parts of the
country and disbursements are to the tune of Rs.
8975 crores. As on 31st March, 2004 the Authorised
Capital and the Paid-up (equity) capital of the
Corporation stood at Rs. 2000 crores and Rs. 1030
crores, respectively. The Profit Before Tax
(provisional), for the year ended 31.03.2004 was
about Rs.2127 crores. In addition to the above, PFC
had paid an interim dividend of Rs. 147 crores for
the year 2003-04 to the Govt. of India which owns
all its equity. Besides being a consistently profitmaking
Corporation, PFC was placed in the highest
category of ‘Excellent’ for the tenth consecutive
year, by Govt. of India on the basis of its overall
performance during the year 2002-03. PFC has
figured in the top 10 PSUs list for the outstanding
performance shown against Memorandum of
Understanding (MoU) targets for which it has
recently received ‘MoU Excellence Award’ from
Hon’ble President of India.
A table showing at a glance year-wise financial
performance of PFC, for the past 3 years, is as under:
(Rs. crores)
FINANCIAL PERFORMANCE AT A GLANCE
(LAST 3 YEARS)
2000-01 2001-02 2002-03
Sanctions 7706 8506 14001
Disbursements 3230 5150 7338
Profit before tax 772 963 1368
Profit after tax 604 778 1172
Realisation 1416 1992 2811
Dividend 150 200 235
Chapter - 21.4
RESOURCE MOBILISATION – DOMESTIC
The Corporation continued to mobilize funds from
the domestic market at competitive rates through
bonds/term loans from banks/Financial Institutions.
Corporation has raised Rs. 8147 crores out of which
Rs. 3625.30 crores were raised through long term
loans from banks, Rs.3766.73 crores as short term
loans from various banks at a fixed rate and Rs.725
crores by way of taxable bonds and a Foreign
Currency Loan of Rs.30.39 crores .
EXTERNAL CREDIT UTILISATION
Asian Development Bank (ADB):
Second line of credit from ADB is approved by ADB
for an amount of US $ 150 Million for the projects
in the reform-oriented states.
Kreditanstalt fur Wideaufbau (KfW);
PFC signed loan agreement with KfW of Germany
in June, 1995 for mixed credit of DEM 46.5 Million
under Energy Investment Programme, for financing
rehabilitation of existing Power Plants and
distribution system. Rehabilitation of Koyna Hydroelectric
Project (HEP) Stage I &II in Mahrashtra
and Hirakud HEP Stage I (Unit 3 & 4) are to be
covered from the loan. As on 31.3.2004, PFC has
disbursed Rs. 54.4 crores for Koyna HEP of
Maharashtra State Electricity Board and Rs. 29.52
crores to Orissa Hydro-electric Power Corporation.
INSTITUTIONAL DEVELOPMENT OF POWER
UTILITIES
PFC has been adopting a proactive and pragmatic
approach to encourage improvement in the financial
and operational efficiency of the state power sector.
Keeping this is view, Operational & Financial Action
Plans (OFAPs) consisting of series of time bound
action plan for different functional area of the utilities
are formulated. The OFAPs are formulated with
active participation of the concerned utility and
approved by the respective Board of the Utilities
as well as State Govt. The implementation of
various activities included in OFAP are monitored
quarterly and progress report on the same is sought
from the utilities. As on 31st March, 2004, OFAPs
are in place for 9 State Electricity Boards (SEBs),
16 State Generation Corporations (SGCs), 1
autonomous body, 21 transmission & distribution
companies and 5 department-run power utilities.
OFAPs have been instrumental in bringing about
a perceptible change in quantitative and qualitative
performance of State Power Utilities functioning.