R.K. Singh, Union Minister of Power and New & Renewable Energy reviewed the performance of REC and PFC Limited on 4th and 5th October 2021 respectively, in the presence of Minister of State for Power Shri Krishan Pal, Secretary Power and Senior Officers of Ministry of Power, with CMDs of REC and PFC and Senior Officers of these CPSEs.
The Minister highlighted Government’s vision is to make available affordable power for all 24×7. In this context, he stressed the need for improving competitiveness of both institutions with a view to increase their market share. He also advised that both the organizations should be nimble footed and dynamically adapt to the changing market needs, increasing renewables, and make efforts to reduce their cost of funds. In this context, he advised PFC and REC to explore better and cheaper options for raising funds, including from offshore sources, with an overall objective of ensuring that the power sector value chain gets access to cheaper funds. For this, he directed PFC and REC to carry out a strategic analysis to adapt to the changed business environment in the Sector with an overall objective to deliver power to consumers at a reasonable cost.
The Minister also stressed upon the need for speedy resolution of Stressed Assets, and suggested a slew of measures to both the Organizations in this context, which includes ensuring that the stressed assets are resolved at a fair value with a minimal haircut for PFC & REC and and in line with the national interests. He emphasized both PFC and REC to increase their outreach by establishing a physical presence across the country. Apart from this, Hon’ble Minister also directed that the system of oversight on the projects funded by PFC and REC should be tightened, which includes increasing frequency of inspections by the Company Officials as well as by hiring expert professionals from the market. He also laid emphasis on strengthening the risk management framework of both the Institutions.
Further, Shri Singh also expressed his concern at the finances of some Distribution Companies and suggested remedial measures to PFC and REC, including establishing presence of their lender nominees in the Board of Directors of DISCOMs of concern.