PFC reports record profit in FY 2022-23


Power Finance Corp. (PFC), a government-owned non-banking finance company and principal lender to the Indian power sector, recorded its highest-ever net profit of INR 11,605 crore ($1,396.61 million) in FY 2022-23, up 16% from the previous fiscal. The total income stood at INR 39,666 crore.

PFC has a lending portfolio comprising loans to power generation (including renewables), transmission, distribution, and other infrastructure projects.

The company registered double-digit growth of 13% in its loan asset book during FY 2022-23. As a result, its loan asset portfolio surpassed the INR 4 lakh crore mark and stood at INR 4,22,498 crore as on March 31, 2023. PFC also achieved all-time high loan sanctions of INR 2.32 lakh crore and disbursed INR 85,756 crore during the year.

Aligning with India’s green goals, PFC is focusing more and more on finance for renewable energy projects. As on March 31, 2023, its gross loan assets comprised INR 48,198 crore in renewable energy comprising INR 16,251 crore of large hydro projects (>25MW) and INR 31,947 crore other than large hydro projects.

India aims for a non-fossil energy capacity of 500 GW by 2030 and net-zero emissions by 2070.

“To achieve India’s energy transition targets, the share of renewable energy in the energy mix, which is presently about 27%, will have to reach 50% by 2030. This requires quadrupling the present solar and wind generation capacity. We would also have to add about 10 GW of pumped storage capacity and over 100 GWh of battery storage to meet the energy-balancing needs. Commensurate equipment manufacturing capacity and evacuation infrastructure also need to be in place,” stated PFC. “Given the huge investment required for decarbonization of our economy, funding of energy transition-related projects will be our mainstay for the foreseeable future.” 

PFC is looking to fund the entire value chain of the energy transition. In addition to the traditional solar/wind projects, it is also exploring bankable projects in renewable equipment manufacturing, energy storage, green evacuation corridors and electric mobility, green hydrogen and ammonia production, and manufacturing of electric vehicles.

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