The loan book of Power Finance Corporation (PFC) in FY24 has been dominated by power distribution and renewable energy.
According to information available from a recent investor conference, PFC’s loan book, as of September 30, 2023, stood at around Rs.4,50,000 crore – implying a growth of 19 per cent over that in September 2022.
Here are some other highlights:
- In H1 (April to September) of FY24, PFC’s overall sanctions stood at Rs.1,17,000 crore as against Rs.2,30,000 crore sanctioned in the full year FY23 (April to March)
- In H1 of FY24, PFC’s disbursements stood at around Rs.55,500 crore – a 2.5 times increase over the corresponding level in H1 of FY23. Disbursements have been dominated by power distribution and renewable energy segments
- PFC’s loan asset book with respect to the renewable energy sector grew by 37 per cent, year-on-year, during H1 of FY24
- PFC is the nodal agency for two Centrally sponsored schemes in the power distribution sector – Late Payment Surcharge Scheme (LPS) and Revamped Distribution Sector Scheme (RDSS)
- With respect to LPS, up to September 30, 2023, PFC’s cumulative sanctions and disbursements stood at Rs.70,500 crore and Rs.31,500 crore, respectively, as of September 30, 2023. Since the implementation of LPS in June 2022, there has been more than 50 per cent reduction in legacy and current dues payable by discoms to generation companies
- PFC Group, which includes PFC and REC, is the nodal agency for RDSS. All states and UTs have been divided under PFC and REC. The action plan for 12 states/UTs falling under PFC has been approved
- For the states/UTs falling under PFC’s purview, projects worth Rs.1,17,000 crore have been sanctioned under RDSS. Out of this, 53 per cent, or around Rs.62,000 crore, has been sanctioned for the installation of 10 crore smart meters while the remaining is for loss-reduction works
- PFC is currently the largest lender to the renewable energy and has supported around 25 per cent of the total current installed capacity
Also read: PFC Conferred With “Green Urja Energy Efficiency Award”
Editor’s note: This story is based on proceedings of a recent PFC investor conference, the transcript of which has been filed on stock exchanges.
