Nature of the Event
Power Finance Corporation Limited (PFC) has disclosed the strike off and dissolution of its wholly owned subsidiary, PFC Projects Limited (PPL), effective June 1, 2026, under Section 248 of the Companies Act, 2013.
Historical Context and Rationale
PFC Projects Limited (PPL), formerly known as Coastal Karnataka Power Limited, was established as a wholly owned subsidiary of PFC for the development of an Ultra Mega Power Project in Karnataka. In 2022, the name and object clause of the company were amended to enable its participation in Lenders-backed Resolution Plans (LbRPs). However, in the absence of approval from the Department of Investment and Public Asset Management (DIPAM), no future business opportunities were expected for the company.
Approval Process and Timeline
The Board of Directors of PPL approved the proposal for striking off the company's name from the Register of Companies, subject to requisite approvals and settlement of all liabilities. The Ministry of Power, Government of India, accorded its approval for the closure and striking off of the company on March 13, 2026. Necessary documents were subsequently filed with the Ministry of Corporate Affairs (MCA), which approved the striking off process on June 1, 2026.
Financial Impact
Financial impact not quantified in the disclosure.