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Power Finance Corporation Ltd. Company History and Annual Growth Details

Our Company was incorporated on July 16, 1986 under the Companies Act as a public limited company,
registered with the RoC, National Territory of Delhi and Haryana and received the certificate for
commencement of business on December 31, 1987. Our Company was incorporated as a financial institution to
finance, facilitate and promote Indias power sector development and was notified as a public financial
institution under Section 4A of the Companies Act in August 31, 1990.

Our Company is not operating under any injunction or restraining order.

Infrastructure Finance Company

On July 28, 2010, our Company was classified as an Infrastructure Finance Company ('IFC'). As an IFC we
are able to raise funds on a cost competitive basis.

Navratna Company

On June 22, 2007, our Company was notified as a Navratna company by the GoI. As a Navratna company, we
are eligible for enhanced delegation of powers to our Board, including (a) the power to incur capital expenditure
without governmental approval upto a specified limit; (b) ceiling on equity investment to establish financial
joint ventures and wholly owned subsidiaries in India or abroad to be 15% of the net worth of our Company in a
single project limited to ' 10,000 million and the overall ceiling on such investments in all projects put together
to be 30% of the net worth of our Company; (c) power to enter into mergers and acquisitions subject to certain
conditions; and (d) the Board has the power to further delegate the powers relating to human resource
management (appointments, transfers, postings, etc,) of executives below Board level to sub-committees of the
Board or to executives of our Company as may be decided by the Board.

Changes in registered office

At the time of incorporation, the registered office of our Company was situated at Room No. 627, Shram Shakti
Bhawan, Rafi Marg, New Delhi 110 001, India. On March 25, 1988, the registered office of our Company was
shifted to Chandralok, 36, Janpath, New Delhi 110 001, India. Subsequently, on September 23, 2006, the
registered office of our Company was shifted to 'Urjanidhi', 1 Barakhamba Lane, Connaught Place, New Delhi
110 001 for ensuring administrative and operational efficiency.

Major events

In addition to the events described above, the following table illustrates the major events in the history of our
Company since its incorporation.

Calendar Year Event

1986 Incorporation of our Company.

1987 Certificate of commencement of business received.

1988 Commencement of lending activities;

Evolution of broad operational policies identifying priority areas for providing financial assistance; and
Formulation of short term, medium term and long-term strategies for operations.

1989 Provided first guarantee to Mitsui and Company, Japan for payment of principal, for Rupees equivalent to
Japanese Yen 27.39 billion for supplier credit made available to Uttar Pradesh State Electricity Board for
setting up of 1,000 MW Anpara B Thermal Power Project.

1990 Declared as a public financial institution under section 4A of Companies Act.

1991 Conferred with a license to deal in foreign exchange in the power sector.

1992 Project on Energy Management Consultation and Training made operational with the objective to bring about
improvement in the efficiency of the energy supply component of the power sector with the help of USAID.

1993 First MoU with GoI in relation to operational targets and rated excellent on the basis of all round performance
for the same.

1994 Company declared maiden dividend to the GoI.

1996 Started funding private power projects.

1998 - Registered as an NBFC;
- Declared a Mini Ratna (Category I); and
- Promoted PTC India Limited as joint venture with NTPC Limited and Powergrid Corporation of India
Limited.

1999 Launched consultancy services in order to provide consultancy services to both state owned and private
power utilities for the power and financial sectors.

2003 Appointed by the MoP as a nodal agency to fund the India Power Fund scheme to catalyze the process of
fresh equity investment in the power sector.

2004 Project appraisal system certified as ISO 9001.

2005 Entered into MoU with LIC and ten leading public sector banks for consortium financing of power projects.

2006 Set up seven subsidiary companies for developing UMPPs; and
Our disbursement crossed Rs. 100,000 million.

2007 - Incorporation of 4 new subsidiaries 2 for developing UMPPs and 2 for developing ITPs;
- Listing of our Equity Shares on the Stock Exchanges.
- Declared as a Navratna PSU.

2008 - Appointed as nodal agency for APDRP;
- Three of our SPVs/subsidiaries namely Coastal Gujarat Power Limited for Mundra UMPP in Gujarat,
Sasan Power Limited for Sasan UMPP in Madhya Pradesh and Coastal Andhra Power Limited for
Krishnapatnam UMPP in Andhra Pradesh were transferred to the successful bidders;
- Launch of R-APDRP programe; and
- Incorporation of a new subsidiary namely PFC Consulting Limited for undertaking consultancy assignment
in the power sector.

2009 - PFCCL appointed as the bid process coordinator for ITPs;
- Jharkhand Integrated Power Limited SPV/subsidiary established for Tilaiya UMPP in Jharkhand
transferred to the successful bidder; and
- Our Company featured in the list of top 500 Global Financial Brands 2009.

2010 Received ISO 9001:2008 certification; and
Registered with the RBI as an Infrastructure Finance Company.

2011 Public issue of long term infrastructure bonds.

Awards and Recognitions

Our Company has been entering into annual memorandum of understanding with the MoP ('MoP MoU') since
1993-94 and has been consistently rated in the highest category of 'Excellent' since then (except being rated
'Very Good' in 2004-05).

Our Company has received the following awards in the recent past:

* 'Gentle Giant', the Largest Navratna (Non-Manufacturing) - award at the 3rd DSIJ PSU Awards on April
21, 2011 by DSIJ;

* 'SCOPE Commendation Certificate' in the category of 'Best Managed Bank, Financial Institution or
Insurance Company' for the year 2009-2010 during the public sector day ceremony on April 11, 2011;

* 'Global HR Excellence Award' in the category of 'Institution Building Award' during the World HR
Congress 2011 on February 11, 2011;

* 'Heavy Weight Navaratna Award' (Non Manufacturing) and the 'Fastest Growing among Navaratna'
during the 2nd PSU Awards 2010;

* '3rd KPMG- Infrastructure Today Award 2010' in the category of 'Most Admired Central Entity in power
Sector';

* 'India Power Award 2010' for the 'Integrated Development of Power and Associated Sector' organized by
Council of Power Utilities on November 11, 2010;

* 'ICT for India Award' for excellence in performance for R-APDRP during the 'Digital Inclusion Day'
organized jointly by SKOCH Consultancy and Department of Information and Technology, Government of
India, on September 22, 2010;

* 'Asia Pacific HRM award' for leading HR Practices in 'Learning & Human Capital Development' during the
Asia Pacific HRM Congress at Bangalore on September 3, 2010;

* 'Indias Pride Award 2010' in the category of 'Financial Catalyst of the year' organized by Dainik Bhaskar;

* Gold award for excellence in 'PSUs in Non Banking Financial Institution 2009' by India Pride awards
with DNA;

* 'India Power Award 2009' in the category of 'Innovative Financing' by the Council of Power Utility on
November 17, 2009;

* Dalal Streets 'First DSIJ Award 2009' in the category 'PSU having the highest profit per employee';

* 'KPMG - Infrastructure Today Award 2008' for 'Most Admired Government Enabler - Power' Category;

* 'India Power Award 2008' for PFCs role and association as implementation agency with 'Distribution
Upgrades and Management (DRUM)' programme of Government of India; and

* Ranked 2nd on the basis of 'Total Income' in FIs/NBFCs/Financial Sector category in Dun & Bradstreets
' Indias Top 500 Companies 2007'
 
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