POWER FINANCE CORPORATION GETS “MAHARATNA” STATUS

POWER FINANCE CORPORATION GETS “MAHARATNA” STATUS

Context:

The Central Government has granted the status of "Maharatna" to the Power Finance Corporation (PFC).

Key Points:

• The PFC has become the 11th party in India to enter the Maharatna category.
• PFC is now joining other companies such as ONGC, Steel Authority of India Limited (SAIL), BHEL and Indian Oil Corporation.

Significance of the Status:

• This improved scenario will empower PFC, to make a good investment, to creating joint financial ventures and wholly-owned subsidiaries.
• The PFC will also be able to implement the government's funding program under the national infrastructure pipeline and its goal of achieving a 40% target of green energy by 2030.
• It will be used to oversee mergers & acquisitions within India as well as abroad.

About Maharatna Status:

• Maharatna status is given to a company that has recorded a profit of more than $ 5 million for 3 consecutive years or an annual turnover of 25,000 crore for three years.
• To qualify for a position, a company must have an annual budget of Rs 15,000 crore for 3 years. The company must also have international or operational measures.

About the PFC:

• PFC is the largest infrastructure company in India.
• It was formed in 1986.
• It works under the jurisdiction of the Union Power Ministry.