New Delhi, Oct. 31: Power Finance Corporation has approached the government to become a full-fledged banking company and to launch a venture capital fund with an initial corpus of Rs 500 crore.
The corporation has sent a proposal to the finance ministry and is likely to announce the setting up of the venture capital fund with a maximum corpus of Rs 5000 crore by mid-November. A separate company is to be formed with a new board of directors with an initial equity Rs 50-100 crore from PFC.
This venture capital would be used to help the power sector companies both private and public.
“The issue of PFC becoming a full-fledged bank is at a very nascent stage but the venture capital fund would be set up within the next 15 days,” a . senior PFC official said.
PFC has reported a net profit of Rs 1,174 crore during the first six months of the current financial year, a massive jump in profits compared with last year.