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