Power Finance Corporation Ltd. (PFC), an ISO 9001:2000 certified financial institution in India amended its memorandum of affiliation. R S Dhillon, the Managing Director, and State-Run Agency’s Chairman said that this alteration is on behalf of its plan to get into the financing of all infrastructure sections bowed up to the energy era.
PFC would be the most upgraded financial institution as it offers reasonable and competitive products with internationally integrated sources and services. It partners with the reforms in the Indian Power Sector and adds value to its stakeholders by stimulating efficient investments in the power and allied sectors, both in India and abroad.
Lack of adequate finance is a hurdle for corporate to get adjusted with their increased demand. And even the additional burden on their cash flow can lead them to breaking point. Dhillon stated that the Atmanirbhar Bharat liquidity infusion package has given PFC a great business chance in a gloomy market. The company is looking forward to its retail borrowing in these 12 months to regulate low-cost funds.
Dhillon commented that the state-run firm, PFC had requested the government and the Reserve Bank of India (RBI) to expand its borrowing limit. They also appealed to provide access to low-cost funds to meet Rs. 65,000 crore requirements for the liquidity package.
The entire host of business funding options is considered as the improvement of cash flows and attainment of financial stability. One of the most important input costs for a financial institution is the cost of funds. If it is a low-cost fund, then it will generate higher returns when the funds are utilized to provide short-term and long-term loans to borrowers. Thus it is understood that the PFC plans to make a profit from the spread between the cost of funds and the interest rate charged to its borrowers.
The progress of a country can be analyzed by measuring its energy usage. It is already proven that PFC has a crucial role in drafting India as a global player. As a large fraction of our nation still does not have any access to electricity, PFC will surely be a tremendous factor for providing electricity access to the needful and thus contributing towards the nation’s development in the coming years.
