The Power Finance Corporation starts functioning in July 1986. It aimed to finance the power sector and other related sectors. In 1990, it was accepted as a public financial institution under the company act 1956. Gradually RBI accepted it as NBFC. Satnam Singh was the MD and Chairman of the Power Finance Corporation. During his work period in Power Finance Corporation, he made the thorough pursuing of the Government’s Ultra Mega Power Projects (UMPP). By doing this he wanted to increase the generation capacity addition. Under Satnam Singh, two national power exchanges had been promoted by PFC to start power trading. All these things happened when Satnam Singh was in the Power Finance Corporation. That’s why, people call him the Satnam Singh PFC.
Satnam Singh’s academic record is quite appreciable. The city of his graduation is Jalandhar. The city of his master’s is Chandigarh. He served 30 years in the power and finance sectors. Various renowned companies like NTPC and Nathpa Jhakri Power Corporation Limited never forget his contribution.
Once Satnam Singh was asked about the secrete behind the huge profit amidst the global economic downturn
Mr. Satnam Singh replied that, when it comes to talk about the largest lender in the power sector, then Power Finance Corporation will be top of the list. Then he also mentioned that, that their (PFC) dependency on the loan book is the main reason for the success. And this is increasing at a satisfactory rate.
Check out few words from the Satnam Singh regarding Power Lenders Club?
As per the Satnam Singh Power Finance Corp, the PLC is introduced by the Power Finance Corporation. The full form of the PLC is the ‘Power Lenders Club’. It is kind of all facilities under one roof type. It has 21 members. These members are 18 Indian Banks, HUDCO, and LIC, etc .Chhattisgarh power project and Karnataka power project are on the way to add to this list. He also added that the shares of the Power Finance Corporation are increasing day by day.
Does climate change affect the growth of the PFC?
As per the Satnam Singh CMD, due to drastic changes in the environment, the coal sector was affected very worse. As a result, power sector is facing low growth. He suggested that, if the power sectors wants to have stability in this field, it needs to focus on long-term growth. In that case, banks can help. If they make a halt in lending for the discount, then the Power Finance Corporation can make a halt too. It depends on the ministry of the power if they set some rules and regulations for short-term and long-term loans then it will be an advantage. As per the loan approval of the Ministry of Power, The Power Finance Corporation will approve the short-term and long-term loans for the discoms.
What are the key issues faced the PFC?
- As per the Satnam Singh PFC, ‘facing the obstacles to meet the capacity addition’. Due to the unpredictable climate, there is no certainty in meeting the capacity addition.
- Giving funds sufficiently is a challenge these days. There a quite gap between the estimated funds and the available source of funds.
- ‘Constraining rules and regulations by the RBI as well as the IRDA for the banks and the insurance companies’.
Summary-
Power Finance Corporation fixes the loan related issues and financing the power sectors which are suffering low growth. Power sectors are facing challenges to deal with fuel shortages, etc.
Author Bio-
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Satnam Singh PFC 