Power Finance Corporation Has been granted Maharatna Status

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The state-owned Power Finance Corporation has been granted 'Maharatna' status by the Government of India (PFC). According to the company's statement, the move will open the way for better financial and operational efficiency. In an official release, PFC stated, "The Government of India conferred the renowned 'Maharatna' status to state-owned Power Finance Corporation, thus providing PFC with greater operational and financial autonomy."

Why is PFC's 'Maharatna' status significant?

  • The designation of Maharatna status to Power Finance Corporation will provide the board of directors of PFC greater authority when making financial decisions.
  • With the new recognition, Power Finance Corporation will be allowed to provide competitive finance to the power sector. It will go a long way toward providing inexpensive and dependable "Power for All 24x7."
  • With Maharatna's increased power, PFC will be able to diversify its operations, accelerating future company growth and leveraging the position to achieve the government's goals for the overall development of the power sector.
Criteria for granting CPSEs Maharatna status.

  • Listed on the Indian stock exchange with the minimum public shareholding required per SEBI requirements.
  • Over the last three years, the company has had an average yearly turnover of more than Rs. 25,000 crore.
  • Over the last three years, the average annual net worth has been more than Rs. 15,000 crore.
  • During the last three years, the average yearly net profit after tax has been greater than Rs. 5,000 crore.
  • Should have a substantial global presence/international operations

Why was PFC bestowed 'Maharatna' status?

  • PFC's Chairman and Managing Director, RS Dhillon, stated in a statement that the business was awarded the 'Maharatna' designation due to its extraordinary financial performance over the last three years.
  • Despite COVID-19, the company experienced the highest-ever annual sanctions and disbursement to the power sector of Rs. 1.66 lakh crores and Rs. 88,300 crores in 2020-21, respectively, as well as the highest-ever profit of Rs. 8,444 crores in FU 2020-21.
Maharatna companies in India are listed below.
  1. Bharat Heavy Electricals Limited
  2. Bharat Petroleum Corporation Limited
  3. Coal India Limited
  4. GAIL (India) Limited
  5. Hindustan Petroleum Corporation Limited
  6. Indian Oil Corporation Limited
  7. NTPC Limited
  8. Oil & Natural Gas Corporation Limited
  9. Power Grid Corporation of India Limited
  10. Steel Authority of India Limited
  11. Power Finance Corporation

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