AP infuses Rs 500 cr into Power Finance Corporation
image for illustrative purpose
Amaravati: The state government has approved the infusion of Rs500 crore into Andhra Pradesh Power Finance Corporation Limited (APPFCL) towards equity capital.
APPFCL, which is registered with the Reserve Bank of India (RBI) as a Non-Banking Financial Company (NBFC), is required to comply with the Capital to Risk-Weighted Assets Ratio (CRAR) norms prescribed by the central bank.
As per the RBI roadmap applicable to government-owned NBFCs, the company must maintain a minimum CRAR of 15%, with at least 10% as Tier-I capital on an ongoing basis.
Earlier, the managing director of APPFCL had requested the government’s approval for the infusion of Rs500 crore through the issue of rights shares to ensure compliance with the prescribed CRAR norms.
In an order issued on January 12, Chief Secretary K. Vijayanand asked managing director, APPFCL, Vijayawada to take necessary action accordingly.
