Satnam Singh was the Chairman and MD of Power Finance Corporation. He graduated in Commerce from Guru Nanak Dev University. It is located in Amritsar. He did a Master's degree in Finance and Marketing from University Business School. It is located in Chandigarh. He had almost 30 years of experience in various sectors like power and finance. This experience is priceless. His contribution to power generation companies like NTPC and Nathpa Jhakri Power Corporation Limited is known to everyone and very much appreciable. Nathpa Jhakri Power Corporation Limited is now known as Satluj Jal Vidyut Nigam Limited. That was the time when he was known as Satnam Singh PFC. Power Finance Corporation is known as PFC. Satnam Singh was quite an experienced person in this field.
What are the roles of the Power Finance Corporation?
Power Finance Corporation came into existence in July 1986. It is known as Financial Institution (FI). It aims to Power sector financing. It is a Government-owned Power Finance Company. It aims to provide integrated development of the power sectors. This corporation becomes public as a Public Financial Institution in 1990 under the Companies Act. This corporation was listed as a Non-Banking Financial Company by RBI. This corporation is dealing with a large range of financial products and services like project term loans, lease financing, direct discounting of the short term loan, bills, consultancy services, etc. Satnam Singh Power Finance Corporation becomes a synonym of the PFC.
What are the new criteria for lending to discom?
As per Satnam Singh CEO, if any discom wants to revive then five criteria need to be met properly. After that, those discoms need to meet another nine criteria. If all criteria are met then they will receive loans for six months. Along with that, the present year subsidy-related procedure should be finished by the State government. As per Satnam Singh, the audited accounts should be there for a certain time. But he warned it should not be later than 18 months.
He added some more. As per his point of view, due to climate change, there is a negative impact on the coal sector. That results in lowering the growth of the power sectors. That's why; he thinks that to solve power sector growth-related problems, power sectors need to focus on long-term growth. He also said, if the banks make a halt in lending to the discoms, they (PFC) also make a halt. If the ministry of power sets some criteria for short-term and long-term loans then they (PFC) also provide short-term loans to the discoms.
Satnam Singh PFC gave assurance that, despite of facing the highest interest rate-related issues, power sectors can be revived. Despite the fuel shortage issue, climate changes, coal mine related problems, and coal supply related problems- power sectors are facing the highest interest rate related issues. But Government-owned PFC can assist the power sectors in this problem. They can able to provide compensation if the power sectors are affected by climate changes, coal mine-related issues, etc.
Summary-
Power Finance Corporation deals with financing the power sectors which are suffering low growth. Power sectors are facing challenges to deal with fuel shortages, coal mine-related problems, etc.
Author Bio-
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