Central Public Sector Enterprises, Its categories "EMPOWER IAS"

The Centre has accorded ‘Maharatna’ status to the state-owned Power Finance Corporation Ltd (PFC), thus giving PFC greater operational and financial autonomy.

About PFC Ltd.

• Power Finance Corporation Ltd. (PFC) is an Indian financial institution under the ownership of Ministry of Power.
• Established in 1986, it is the financial backbone of Indian Power Sector.
• PFC is the 8th highest profit making Central Public Sector Enterprise (CPSE) as per the Department of Public Enterprises Survey for FY 2017–18.
• It is India’s largest NBFC and also India’s largest infrastructure finance company.

Benefits of Maharatna Status

• This new status will enable PFC to offer competitive financing for the power sector, which will go a long way in making available affordable & reliable ‘Power For All 24×7’.
• This will also impart enhanced powers to the PFC Board while taking financial decisions.
• It can make equity investments to undertake financial joint ventures and wholly-owned subsidiaries and undertake mergers and acquisitions in India and abroad.
• It can also structure and implement schemes relating to personnel and Human Resource Management and Training.
• It can also enter into technology Joint Ventures or other strategic alliances among others.

 

Central Public Sector Enterprises

• The CPSEs are run by the Government under the Department of Public Enterprises of Ministry of Heavy Industries and Public Enterprises.
• The government grants the status of Navratna, Miniratna and Maharatna to them based upon the profit made by these CPSEs.
• The Maharatna category has been the most recent one since 2009, other two have been in function since 1997.