Wiki source code of Power Finance Corp Ltd

Version 1.2 by Asif Farooqui on 2020/11/23 18:45
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7 Overview
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10 Incorporated on July 16th, 1986, Power Finance Corporation Ltd. is a Schedule-A Navratna CPSE, and is a leading Non-Banking Financial Corporation in the Country. PFC's registered office is located at New Delhi and regional offices are located at Mumbai and Chennai.
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12 [[https:~~/~~/pfcindia.com/Home/VS/4>>url:https://pfcindia.com/Home/VS/4]]
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14 PFC is under the administrative control of the Ministry of Power. PFC was conferred the title of a 'Navratna CPSE' in June,2007, and was classified as an Infrastructure Finance Company by the RBI on 28th July,2010.
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17 PFC plays a crucial role in the rise of India as a global player. Increasingly, a country's development is gauged by measuring its energy usage. With a large fraction of its nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.
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19 The company's shareholders and clients place their full faith in its ability to deliver unbeatable results. Despite the hardships played by the power and financial sectors, PFC continues to maintain a healthy loan book, as well as low levels of NPAs. This is thanks to PFC's robust evaluation and appraisal processes.
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22 Key Strengths
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24 .
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26 Largest NBFC by Networth (all reserves)
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28 A specialized Financial Institution in Power Sector
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30 A dominant player with around 20% market share
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32 A lean and professionally-managed organization
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34 Designated as a "Nodal Agency" for development of Integrated Power Development Scheme(IPDS), Ultra Mega Power Projects (UMPPs) and "Bid Process Coordinator" for Independent Transmission Projects (ITPs)
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36 ISO 9001:2015 certified
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38 A consistently profit-making and dividend-paying company
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40 Strong asset quality reflected in low NPAs
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42 Lowest Administrative cost in the industry
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44 Consultancy & Advisory services in strategic, financial, regulatory and capacity building skills under one umbrella
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47 Subsidiaries
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50 PFC subsidiaries
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53 PFC Consulting Limited
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55 Chhattisgarh Surguja Power Limited
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57 Coastal Karnataka Power Limited
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59 Coastal Maharashtra Mega Power Limited
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61 Coastal Tamil Nadu Power Limited
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63 Orissa Integrated Power Limited
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65 Sakhigopal Integrated Power Company Limited
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67 Ghogharpalli Integrated Power Company Limited
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69 Tatiya Andhra Mega Power Limited
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71 Odisha Infrapower Limited
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73 Cheyyur Infra Limited
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75 Deoghar Infra Limited
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77 Bihar Infrapower Limited
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79 Bihar Mega Power Limited
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81 Jharkhand Infrapower Limited
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83 Deoghar Mega Power Ltd.
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86 PFC Joint Ventures
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88 National Power Exchange Limited
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90 Energy Efficiency Services Limited
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92 <img 2>
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95 Products and Services
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98 Fund Based Products
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100 Project Term Loans (Rupee and Foreign Currency)
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102 Buyer's Line of Credit
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104 Corporate Loan
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106 Credit Facility for Purchase of Power through Power Exchange
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108 Debt Refinancing
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110 Financing of Fuel Supply Projects and Equipment Manufacturers
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112 Grants/Interest Free Loans for Studies/ Consultancies
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114 Lease Financing for Purchase of Equipment
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116 Lease Financing for Wind Power Projects
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118 Line of Credit for Import of Coal
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120 Short/Medium Term Loan to Equipment Manufacturers
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122 Direct Discounting of Bills - For Buyers/ Sellers
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125 Non-Fund Based Products
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127 Deferred Payment Guarante
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129 Guarantee for Performance of Contract/Obligations w.r.t Fuel Supply Agreement (FSA)
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131 Letter of Comfort (LoC)
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133 Policy for Guarantee of Credit Enhancement
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137 Industry Overview
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139 Power sector is one of the most important drivers for economic growth and socio-economic development of a nation. Therefore, reliable electricity supply is a precursor for sustainable growth of the power sector and thereby by the Indian economy. Accordingly, Government of India is actively committed to ensuring electricity access to each household.
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141 [[https:~~/~~/pfcindia.com/DocumentRepository/ckfinder/files/Investors/Annual_Reports/PFC_AR2020_Book_29092020.pdf>>url:https://pfcindia.com/DocumentRepository/ckfinder/files/Investors/Annual_Reports/PFC_AR2020_Book_29092020.pdf]]
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143 In this direction, the Government has been taking plethora of initiatives. With an aim to provide electricity distribution infrastructure in the rural areas, GOI launched the “Deendayal Upadhyaya Gram Jyoti Yojana (DDUGJY). The scheme is focused on electrification of village and also focusses on feeder separation from household and agricultural purposes along with strengthening of subtransmission and distribution system, metering of feeders etc. Under the scheme, 100% electrification of village has been achieved in the year 2018.
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145 Further, supplementing the DDUGJY scheme, the Government introduced the scheme named Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya) to provide energy access to all by last mile connectivity by providing electricity connections to all remaining un-electrified households in rural as well as urban area. As on date around 99% of the households have been electrified. The Saubhagya is expected to create an additional power demand of about 28,000 MW.
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147 The continuous electricity supply can be ensured through an extensive and efficient Transmission and Distribution infrastructure. With this objective, the Government of India (GOI) has come out with “Integrated Power Development Scheme". The scheme is focused at strengthening of subtransmission and distribution networks in urban areas and the IT enablement of the distribution sector. GOI has mandated PFC as the nodal agency for implementation for the scheme.
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149 The concentrated efforts of the Government towards ensuring continuous, uninterrupted and reliable supply of electricity are expected to boost power-based ancillary economic and business activities, which will further increase the demand for power and resulting in inclusive development of the economy.
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152 Generation
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154 Installed Capacity
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156 As on March 31, 2020, India’s total installed capacity was 3,70,106.46 MW. Thermal sources continued to have a dominant share at around 62% (2,30,599.57 MW), Hydro around 12% (45,699.22 MW), Renewable around 24% (87027.68 MW) and Nuclear around 2% (6780 MW). The installed capacity stood at around 28% (1,03,321.74 MW) in state sector, around 47% (1,73,307.79 MW) in private sector and around 25% (93,476.93 MW) in central sector. The capacity addition target for the FY 2019-20 was set at 12,186.14 MW. However, a capacity addition of 7,065 MW has been achieved during the FY 2019-20.
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158 <google table>
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160 The Overall generation (Including generation from grid connected renewable sources) in the country has been increased from 1110.458 BU during 2014-15 to 1173.603 BU during the year 2015- 16, 1241.689 BU during 2016-17, 1308.146 BU during 2017-18, 1376.095 BU during 2018-19 and 1390.467 BU during 2019-20.
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163 Transmission
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165 Transmission system establishes the link between source of generation on one side and distribution system on the other side. Transmission planning is a continuous process of assessing the need, timing and the requirement for additional transmission systems. The transmission requirements could arise on account of factors like new generation additions in the system, increase in demand etc. Thus, for efficient dispersal of power, strengthening the transmission system network, enhancing the Inter-State power transmission system, augmentation of the National Grid and enhancement of the transmission system network is imperative. An extensive network of transmission lines has been developed over the years for evacuating power produced by different electricity generating stations and distributing the same to the consumers.
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167 At the end of the fiscal 2020, its country had an extensive transmission network spanning 4,25,017 Ckms (at the 220 kV and above voltage levels). Further against a target of adding 23,621 Ckms of transmission lines for FY 2019-20, 11,664 Ckms have been achieved.
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169 Distribution
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171 The distribution sector is the most important link in the power sector value chain, which channelises the revenue realisation & provide overall stability to the sector. A strong and efficient distribution sector is crucial for the development of robust, selfsustaining power sector. The state power sector entities play a very vital role in power distribution in India. Government of India is supporting states for strengthening distribution system necessary for providing 24x7 power supply to all households through Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY) and Integrated Power Development Scheme (IPDS). Government have electrified 26 million households in short time frame of 15-18 months under Pradhan Mantri Sahaj Bijli Har Ghar Yojana (Saubhagya). MoP is also working on distribution perspective plan for power distribution sector aimed at integrating the planned reforms and improved processes of operations to serve the consumers.
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175 Outlook
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177 Amid the COVID-19 lockdown, the DISCOMs are seeing reduction in revenues collection, which is leading to strain on their cash flows. This is having a cascading impact on the entire power sector value chain. Therefore, to facilitate liquidity flow in the power sector, Govt. of India recently announced a `90,000 crore credit package to enable DISCOMs to meet their obligations. PFC & REC have been mandated as the key lending partners for the same.
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179 PFC has always been a strategic partner of Government in implementing power sector initiatives and this is one of many such initiatives. The company believe this a positive step by the Government as it will strengthen the entire power sector value chain. Further, it is expected that this liquidity infusion would help PFC borrowers to continue to their business operations without any business interruptions.
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183 Financial Highlights
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187 Power Finance Consolidated June 2020 Net Sales at Rs 16,914.05 crore, up 15.86% Y-o-Y
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189 [[https:~~/~~/www.moneycontrol.com/news/business/earnings/power-finance-consolidated-june-2020-net-sales-at-rs-16914-05-crore-up-15-86-y-o-y-5702311.html>>url:https://www.moneycontrol.com/news/business/earnings/power-finance-consolidated-june-2020-net-sales-at-rs-16914-05-crore-up-15-86-y-o-y-5702311.html]]
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192 Reported Consolidated quarterly numbers for Power Finance Corporation are:
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194 Net Sales at Rs 16,914.05 crore in June 2020 up 15.86% from Rs. 14,599.22 crore in June 2019.
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197 Quarterly Net Profit at Rs. 2,683.20 crore in June 2020 up 22.8% from Rs. 2,185.00 crore in June 2019.
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200 EBITDA stands at Rs. 15,495.48 crore in June 2020 up 10.72% from Rs. 13,994.63 crore in June 2019.
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203 Power Finance EPS has increased to Rs. 10.16 in June 2020 from Rs. 8.28 in June 2019.
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206 Power Finance shares closed at 95.35 on August 13, 2020 (NSE) and has given -24.36% returns over the last 6 months and -8.36% over the last 12 months.
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210 References
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