PFC’s net rises marginally to Rs606.74 crore in Q4

For the year ended March 2011, the company's net profit increased to Rs2,618.79 crore from Rs2,357.24 crore in the 12-month period last fiscal, a growth of 11.10%

Mumbai: State-run Power Finance Corporation (PFC) on Tuesday said its net profit grew marginally to Rs 606.74 crore in the fourth quarter ended 31 March 2011, up 1% from Rs600.77 crore in the corresponding period of the previous fiscal, PFC said in a filing to the Bombay Stock Exchange, reports PTI.

Total income increased by 24.47% to Rs2,623.41 crore in the quarter under review from Rs2,107.61 crore in the same Jan-March period last year.

For the year ended March 2011, the company's net profit increased to Rs2,618.79 crore from Rs2,357.24 crore in the 12-month period last fiscal, a growth of 11.10%.

Total income rose to Rs10,160.55 crore in the year under review from Rs 8,076.84 crore a year ago.

PFC, set up in July 1986 as a financial institution (FI), provides dedicated financing to power sector with a committed aim for the integrated development of the power and associated sectors.


Posco project hangs between ‘to be’ and ‘not to be’

Though chief minister Naveen Patnaik is still hopeful about the 'dream' project pulling through, Posco is still waiting for a piece of land to set up its 12 million tonne per annum (mtpa) greenfield steel mill

Bhubaneswar: Orissa's mega steel project Posco has slipped into a situation of Shakespeare's 'To be, or not to be' with the Union environment minister putting a halt to the forest clearance, reports PTI.

Though chief minister Naveen Patnaik is still hopeful about the 'dream' project pulling through, not many share his optimism given the spate of controversies that the Rs52,000 crore project has attracted.

"It's a million dollar question about a $12-billion project. The manner in which the project is facing frequent setbacks, only time will determine its fate,"' said All Orissa Steel Federation president PL Kandoi.

Mr Kandoi felt that the state government should first provide raw materials to companies coming to the state.

"Posco will not invest unless it gets raw material linkage," he said.

However, Orissa's steel and industries minister Raghunath Mohanty is very confident that the Posco will drop anchor at Paradip.

"We are confident that Posco will be able to set up its unit near Paradip," he said rejecting speculation, though he was unsure of how to proceed on overcoming the many hurdles that lay on the road.

The South Korean steel major, which signed a memorandum of understanding (MoU) with the state government on 22 June 2005, is still waiting for a piece of land to set up its 12 million tonne per annum (mtpa) greenfield steel mill.

According to provisions of the MoU, the company was to complete the first phase of 6mtpa capacity unit by July 2010 by investing Rs10,100 crore.

Both the Orissa government and the company had agreed that the facility would be commissioned by July 2010 or 36 months from the date of taking title and possession of land.

However, stiff opposition by the residents of two of the seven seaside villages stalled the project for over five years.

"Despite all-out efforts, the state government has not been able to hand over an inch of land to Posco. We will continue to fight for the rights," said Posco Pratirodh Sangram Samiti president Abhay Sahu.

Not only the steel project, Posco's all other projects have also hit hurdles.

While people in Cuttack city were opposed to the company's plan of drawing water from Naraj barrage on river Mahanadi, local people were opposed to Posco's move of mining iron ore from Khandadhar iron ore reserve in Sundargarh district.

Though Orissa government had recommended Posco-India's name for prospecting license over the Khandadhar reserve, it was challenged in the high court.

The court was yet to take a decision on the matter thus posing uncertainty over the company's raw material linkage.

Posco project, billed as the biggest foreign direct investment which got support of prime minister Manmohan Singh as well as the state's chief minister, was still struggling to get only 4,000 acres of land.

Even if the people vacate land for Posco, the company would find it tough to go ahead with construction unless assured of the raw material link, a company executive said with condition of anonymity.

Amidst adverse conditions, the South Korean Steel major had reduced its manpower with people quitting the multinational at regular intervals. The company's senior general manager Saroj Mohapatra, the head of human resource department was the latest to put in his papers.

Mr Mohapatra's exit followed that of the company's general manager (external relations) Simanta Mohatny and deputy general manger (administration) Avinash Tiwari.

While the Indian employees quit, Koreans were either transferred to other units or taken back to their native land.

The company's country corporate office here, which had about 60 employees, is now reduced to about 30.



Shadi Katyal

6 years ago

I have decided not to express my opinons anymore till your polciy of security code is changed.
One cannot continue to keep writing and if the Moneylife wish our comments it must change its policy and if mistake in code let the writing come back and not just wipe out.

What the Lokpal should be: An outline of the Commission

It’s already evident that drafting a new Lokpal Bill is going to be a rocky process. There are no easy solutions and there will likely be further agitations. But it might help to keep some important aspects in mind while setting out the scope and functions of the Lokpal Commission

As expected, recent reports in the media have confirmed the feeling that the drafting and the passage of the Lokpal Bill will be difficult. The intentions were fairly clear from the way the Joint Advisory Committee was formed. With five members of the government being big guns, with a wealth of legal and administrative experience, and a broad mix of persons on the other side, it is likely to be somewhat one-sided.

The very composition of the Committee is asking for trouble, with ten members, equally divided five and five. It is easy to think of a situation where the Committee is split evenly. There are already signs of division and this is likely to lead to a stalemate. There is no built-in solution and there will likely be further agitation. How could experienced lawyers and activists have agreed to such an arrangement? No bench of the High Court or even the Supreme Court hearing important matters has an even number. This is to enable a decision by majority if unanimity cannot be achieved.

The Committee must have a broad picture of the scope and functions of the Lokpal. Here are some aspects to keep in mind.

1. The first is the number of members on the body. With wide powers proposed to be given to this authority, it would be desirable to have three members. The nomenclature of the body in the signal should not pose any problem. It could be called by any other name, like the Lokpal Commission. It should not be merely a recommendatory body, but it should be empowered to go to the court to prosecute offenders. This will be the first major contention between the government and other members on the Committee. This is where a majority arrangement would have helped.

2. Then the selection of members. Various alternatives can be considered. It would be better to have something like the process of selection of the chief vigilance commissioner or the election commissioner.

3. The Bill, as drafted in the Jan Lokpal Bill is too broad-based. Now there is a proposal to cover cases of corporate corruption as well as NGO corruption. This will overburden the Lokpal with too many petty cases. There has to be some filtering of the complaints that can be taken up by the Lokpal Commission. It would be better to leave it to the Commission to lay down criteria for taking up relatively big cases and leave the rest to other agencies.

4. The most important requirement will be for the Lokpal Commission to have an independent investigating agency under its direct control. To start with, about 50 handpicked officers of the Central Bureau of Investigation can be deputed to the Commission for five years. It will also need officers from the Enforcement Directorate and the Income-Tax Department with powers for search and seizure.

5. The powers for search, seizure and arrest should be built into the Lokpal Commission Act along with other provisions from the Criminal Procedure Code, such as the first information report and so on.

6. The Lokpal should have the power to freeze and also confiscate the assets of the accused in appropriate situations.

7. The Lokpal Commission should have its own panel of public prosecutors and their remuneration should be fixed by the Commission so that the best talent is available to conduct prosecution without fear or favour.

8. In order to ensure speedy disposal of cases, it would be necessary to have a few fast-track courts, at the Sessions Court level, so that appeals can go the High Court exclusively for Lokpal Commission cases which would mostly involve important public figures.

9. The road ahead will not be easy, with differences cropping up at every stage, the Committee split halfway and no easy solution in sight. On how many issues will Anna Hazare launch a hunger protest? Then there is the procedure after the draft is worked out. Political parties will get into the act to consider passing the Act or a Standing Committee will be proposed. There will be no time limit for the Committee to report. It will also propose many amendments. The Bill could face the same fate as the Women's Reservation Bill, which will be sad for the fight against corruption.

(G V Ramakrishna is a former member of the Planning Commission. He is also a former chairman of the Securities & Exchange Board of India and the Disinvestment Commission.)


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