PFC gets shareholders' nod to raise borrowing limit

NEW DELHI: State-owned Power Finance Corporation (PFC) has received shareholders' approval to increase its borrowing limit to Rs six lakh crore from existing Rs four lakh crore.

All the resolutions proposed in the annual general meeting (AGM) on September 29, 2020, were passed by the requisite majority, it said in a BSE filing on Tuesday.

According to an AGM notice by the company, considering the fund requirements of PFC over the next 3 to 4 years, the board on August 13 accorded approval for seeking shareholders' nod for increasing the borrowing limit to Rs 6 lakh crore over and above aggregate paid-up capital of the firm and its free reserves.

As per the notice, a special resolution was proposed for increasing the borrowing limit in the annual general meeting(AGM) scheduled on September 29.

Shareholders had approved a borrowing limit of Rs 4 lakh crore in the 30th AGM held on August 19, 2016.

PFC is engaged in providing financial assistance to power utilities for meeting financing and development requirements of the power sector.

In order to tap the emerging business opportunities in the changing business environment, it also got shareholders' approval to expand the object clause in its Memorandum of Association during the AGM.