PFC Signs FY26 MoU With Power Ministry for Target Review
29 Aug 2025 CW Team
State-owned Power Finance Corporation Limited (PFC) has signed a performance evaluation memorandum of understanding (MoU) with the Ministry of Power for the financial year 2025–26. This agreement sets an annual target framework against which PFC’s performance for FY26 will be measured, as per the Department of Public Enterprises (DPE) evaluation guidelines.
According to government norms, all Central Public Sector Enterprises (CPSEs), including their subsidiaries, are mandated to formalise annual MoUs to define key deliverables. These MoUs aim to assess the performance of management across selected financial and operational indicators, thereby improving critical organisational benchmarks.
The MoU for FY26 was electronically signed by Power Secretary Pankaj Agarwal and PFC Chairperson and Managing Director Parminder Chopra. The DPE’s framework is widely used to set performance targets for CPSEs and to evaluate their achievements at the end of each financial year.
While specific details of the targets have not been disclosed, PFC noted that the MoU outlines expectations across multiple parameters that will directly influence its annual performance rating.
PFC, India’s largest government-owned non-banking financial company by consolidated asset size, functions under the administrative control of the Ministry of Power. It plays a pivotal role as the primary financial institution in India’s power sector, supporting infrastructure development and funding for generation, transmission, and distribution projects across the country.