PFC’s stressed assets being resolved through NCLT route
MUMBAI: State-run Power Finance Corporation (PFC) said it is currently in the various stages of resolving stressed power assets of above ₹19,000 crore, most of them in the private sector, while assets of ₹8,100 crore spread across nine power projects are being resolved through the NCLT route.
PFC has posted a net profit of ₹935 for the quarter ended March 2018 against loss of ₹3,409.5 crore in the same period of FY17 due to high provisions for bad loans. Its total income in the fourth quarter stood at ₹6,376 crore, up from ₹5,7977 crore a year ago.
PFC’s consolidated net profit for FY18 was at ₹5,844 crore, up from ₹2,236.10 crore in FY17.
PFC has recorded disbursements of ₹64,400 crore in FY18 and sanctions of ₹1,16,000 crore. According to Rajeev Sharma, Chairman and Managing Director, the company’s exposure to renewable business has increased significantly with some of the major loans sanctioned to five wind projects of IL&FS, three solar projects of ACME and wind projects of Mytra.
The company’s loan assets grew by 14 per cent at ₹2.79 lakh crore in FY18 from ₹2.45 lakh crore in the previous fiscal.
Out of this, government orders constituted 82 per cent and private orders the remaining 18 per cent where PFC’s exposure amounts to ₹51,000 crore.
According to the company management, 11 per cent of the loans to the private sector are stressed, with little over half of these projects being commissioned, while the rest half of the stressed projects either have coal linkages or fuel supply agreements (FSAs).
Source: thehindubusinessline
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