Power Sector Maharatna PFC approves PAMC, declares Int. Div. for Q1’23

New Delhi: Power Sector Maharatna PFC Board took a bold financial step for ameliorating stressed asset entities and accorded approval for creation of Power Asset Management Company (PAMC), for taking over the stressed/NPA power assets. Though the creation of PAMC is subject to further approval from the Ministry of Power and other competent authorities. PAMC will be a Joint Venture between PFC & REC with equal share of 50:50. REC Board had earlier approved the proposal for subscribing to 50% equity in PAMC. PAMC will be a professional organization which will have the expertise to acquire stressed power assets, operate, maintain and complete them wherever required. This would be a model remedial initiative to bring loss making Central and State controlled PSUs out of the red.

Announcing the financial performance for Q1 for year 2022-23, PFC registered a stand-alone profit of Rs. 2,110 cr. for Q1’ 23. On a consolidated basis, the PAT for Q1’23 is at Rs.4,580 cr.  The company declared an Interim Dividend of Rs. 2.25 per share proposed by Board in Q1’23.

A healthy CRAR is projected at 24.33% with Tier I capital of 20.95% and Tier II capital of 3.38%. Sustained resolution efforts have resulted in Stand Alone Net NPA levels dropping below 2% – the lowest in 5 years – Net NPA ratio at 1.73% for Q1’23 viz-a-viz 2% in Q1’ 22.

There is 23 bps reduction in Consolidated Net NPA ratio from 1.80% in Q1’22 to 1.57% in Q1’23 due to resolution of stressed assets.

Maintaining a positive sentiment, PFC sanctioned Rs.33,079 cr. to Discoms under GoI’s “Late Payment Surcharge and Related Matters Rules 2022” for clearing of outstanding dues. The funding will be backed by State Govt. Guarantee. This will help in alleviating the stress across the power sector value chain.

The Ministry of Power in collaboration with PFC has also launched a digital dashboard Urja DRISHTI (Discom Rating for Integrated Solvency, Health and Transparency Improvement), accessible at www.urjadrishti.com. The platform will publish key sector insights for Discoms in the public domain. This will enable stakeholders to view key performance metrics and comparisons between Discoms.