PFC secures Approval from RBI to setup Finance Company in Gujarat

Power Finance Corporation (PFC) received approval from the Reserve Bank of India (RBI) on Tuesday to establish a wholly-owned finance company in Gujarat's GIFT City. According to PFC Chairman and Managing Director Parminder Chopra, the entity at the International Financial Services Centre (IFSC) will present new business opportunities for PFC and contribute to the growth of the country's power sector.

According to a regulatory filing, PFC has received the RBI's no objection letter for establishing a finance company as a wholly-owned subsidiary in GIFT City.

"The GIFT City platform provides a conducive environment for international lending activities and a world-class infrastructure. We are confident that PFC will leverage these advantages to carve a niche for itself in the global market," she said.

As per the filing, PFC's entry into the IFSC is expected to open up new business opportunities and establish its global presence. PFC is an infrastructure finance company under the power ministry.

Power Finance Corporation Ltd. (P. F. C.) is an Indian central public sector undertaking owned by the Government of India's Ministry of Power. It was founded in 1986 and serves as the financial backbone of the Indian power sector. PFC's net worth is INR 1,184 billion as of 30 June 2023. According to the Department of Public Enterprises Survey for Fiscal Year 2017-18, PFC is the eighth most profitable Central Public Sector Undertaking (CPSU). PFC is India's largest NBFC as well as the country's largest infrastructure finance provider. On October 12, 2021, the government upgraded PFC's status from Navratna to Maharatna.