PFC Board Declines High-Stakes Loan to Shapoorji Pallonji Group

The Power Finance Corporation (PFC) has opted not to extend a substantial loan to the Shapoorji Pallonji Group. PFC CMD Parminder Chopra highlighted that this decision was based on the company's policy of avoiding 'high-end exposure' in new sectors, with the loan proposal reportedly amounting to USD 2.4 billion.

The Power Finance Corporation (PFC) has made a pivotal decision to not grant a major loan to the Shapoorji Pallonji Group. This conclusion was reached by the PFC Board, with Chairperson and Managing Director, Parminder Chopra, highlighting concerns over taking on 'high-end exposure' in sectors unfamiliar to the corporation.

In a post-earnings call, Parminder Chopra concisely emphasized that the board's wisdom steered them away from the potential financial risk associated with this new sector engagement. The conglomerate Shapoorji Pallonji is known for its wide-ranging expertise in areas such as engineering and construction.

Initial due diligence was conducted, but ultimately, the decision was not to move forward with the requested loan, reportedly amounting to USD 2.4 billion, as per media reports. PFC is a critical infrastructure finance entity operating under the purview of the power ministry.

(With inputs from agencies.)