NEW DELHI :
Rajiv Ranjan Jha has been appointed as the director projects at India’s largest power sector lender Power Finance Corporation Ltd (PFC), the state-run firm said in a statement.
PFC recently became the 11th Maharatna central public sector enterprise (CPSE), with the Union government according it the coveted status that now provides the state-run firm with greater operational and financial autonomy.
“Jha was working as executive director (projects) in PFC before his elevation to the role. In his new role, he will be responsible for developing and enforcing sound strategies to venture into new business avenues and also oversee the ongoing projects funded by the company,” the statement said.
The buyout of the government’s entire stake in REC Ltd by PFC in 2019 cleared the decks for the $80 billion lending institution.
“He was earlier responsible for the entire loan portfolio of Private Sector Projects under Consortium Lending with PFC as lead Financial Institution. He had also handled the renewable energy loan portfolio and has worked extensively in the area of project appraisal (especially for independent private power projects). He was also associated with development and award of UMPPs for which PFC is the nodal agency. Jha has been instrumental in resolving some of the large-scale stressed assets with a loan value of around ₹10,000 crore,” the statement added.
PFC can now invest up to ₹5,000 crore, or 15% of its net worth, in a single project after its Maharatna status. This comes against the backdrop of the government using power sector lenders such as PFC and REC Ltd to instil financial discipline at state-owned electricity distribution companies (discoms).
“Before joining PFC, he had worked with Visakhapatnam Steel Plant (Rashtriya Ispat Nigam Ltd) for more than eight years and dealt with operation and maintenance of their coal-based captive power plant. Jha holds a bachelor’s degree in science (mechanical engineering) from NIT Jamshedpur of Ranchi University and an advanced diploma in management from IGNOU,” the statement said.
The maharatna dispensation was ushered in by the Union government for mega CPSEs to become global giants. PFC, India’s largest non-banking financial company (NBFC) and one of the 14 Navratna CPSEs, can invest up to ₹5,000 crore, or 15% of its net worth, in a single project besides being granted enhanced powers by the government for undertaking mergers and acquisitions once it gets the Maharatna status. Navratna and Miniratna CPSEs can invest up to ₹1,000 crore and ₹500 crore, respectively.
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