PFC to seek shareholders' nod to raise borrowing limit

NEW DELHI: State-owned Power Finance Corporation (PFC) will seek shareholders' nod to hike borrowing limit to Rs 6 lakh crore in the annual general meeting later this month.

Currently, the borrowing limit is Rs 4 lakh crore.

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, now a special resolution has been proposed for increasing the borrowing limit in the annual general meeting(AGM) 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 changed business environment, it has sought shareholders' nod to expand the object clause in its Memorandum of Association.