Power Finance Corp to sanction Rs 55,000-crore loan this fiscal

NEW DELHI: State-run Power Finance Corp is looking to sanction loans worth Rs 55,000 crore in the ongoing fiscal and aiming to earn 14.5 per cent return on net worth, as per a performance agreement with the Power Ministry.

"The key performance parameters under 'Excellent' category for FY2016-17 include sanctions of Rs 55,000 crore (excluding Transitional Financing), Return on Net Worth of 14.50 per cent and an Operating Profit (Profit Before Tax excluding other Income, Extraordinary and Exceptional Items) of Rs 8,130 crore in addition to other sector-specific and enterprise-specific parameters etc," Power Finance Corp said in a statement.

The Power Finance Corporation Ltd (PFC) signed its performance related pact with the Ministry of Power for FY2016-17 on September 1, 2016.

The agreement was signed by Power Secretary P K Pujari and PFC Chairman and Managing Director M K Goel.

The monitoring of performance vis-à- vis MoU targets would be carried out quarterly during the Performance Review Meetings being held in the Ministry of Power.

PFC has been a MoU-signing Enterprise since 1993-94 and since then it has been consistently rated in the highest category of 'Excellent' (Very Good; for the year 2004-05) for its overall performance.

PFC is mainly into financing power projects in the country. It is also a nodal agency for implementing Ultra Mega Power Projects in the country.