Power Finance Transfers Rs 82 Crore to Unspent CSR Account for FY25

NEW DELHI (India CSR): In an era where corporate responsibility is increasingly paramount, India’s leading financial institutions are stepping up to address societal challenges alongside their core business objectives. Power Finance Corporation Limited (PFC), a ‘Maharatna’ CPSE under the Ministry of Power and the country’s largest government-owned Non-Banking Financial Company (NBFC), continues to be a pivotal force in India’s energy and infrastructure landscape. Beyond its significant financial contributions, PFC has deeply embedded environmental stewardship, inclusive development, and strong governance into its operational ethos. The recently released Annual Report for FY 2025 provides a comprehensive look into PFC’s Corporate Social Responsibility (CSR) efforts, including critical insights into its spending, the allocation of funds, and the amount designated for ongoing projects.

Key Facts Table: Power Finance Corporation CSR FY 2024-25

Unveiling the Unspent: A Deeper Look at PFC’s CSR Report

According to its latest Annual Report for the Financial Year 2024-25, Power Finance Corporation’s total CSR obligation for the year stood at Rs 257.70 crore. Demonstrating its commitment to social upliftment, PFC disbursed a substantial Rs 175.78 crore towards various CSR projects and administrative overheads during this period, including Rs 168.93 crore on projects, Rs 6.61 crore on administrative overheads, and Rs 0.23 crore on impact assessment. A notable detail from the report reveals an unspent CSR amount of Rs 81.92 crore, specifically earmarked for ongoing multi-year projects. This amount, as per the Companies Act, 2013, was duly transferred to a designated unspent CSR account with a scheduled bank by April 30, 2025. The reason for this unspent balance is attributed to the nature of these ongoing initiatives, where payments are made in tranches upon the achievement of specific milestones, ensuring diligent utilization and accountability. Cumulatively, the unspent CSR expense as of March 31, 2025, amounted to Rs 267.06 crore. This figure includes a sum of Rs 12.58 crore pertaining to projects sanctioned against the budget of the period up to March 31, 2020.

Sustaining Impact: PFC’s Diverse CSR Initiatives

PFC’s CSR strategy is deeply rooted in addressing diverse, high-impact social development areas across India. For FY 2024-25, the corporation strategically aligned its CSR expenditure with the Government of India’s annual theme of ‘Health and Nutrition’. This focus translated into tangible projects such as the installation of rooftop solar power units in rural health centers across Bihar, the construction of over 200 Anganwadi centers in Punjab, and the distribution of more than 3,000 motorized tricycles to differently-abled persons in 10 states. Other significant initiatives included funding mobile cancer detection vans in West Bengal and commissioning a 100-bed multispecialty hospital in tribal Maharashtra. These projects are meticulously designed to align with national development goals, reflecting PFC’s unwavering commitment to inclusive development and creating long-term societal value.

Beyond direct project implementation, PFC has also made substantial contributions to national development funds, including Rs 302 crore to the PM CARES Fund, Rs 372 crore to the Swachh Bharat Kosh, and Rs 157 crore for various skill development programs across the country. A specific transfer of Rs 24.08 crore was made to the Swachh Bharat Kosh on April 30, 2025, from unutilised amounts (Rs 25.64 crore minus Rs 1.66 crore paid to agencies) of completed or short-closed CSR projects. Additionally, a contribution of Rs 1.90 crore was made to the Swachh Bharat Kosh from unutilised amounts of completed or short-closed CSR projects in FY 2024-25.

Financial Prudence and Growing Commitments

The financial health and strategic growth of PFC underpin its robust CSR commitments. The company’s CSR budget saw a significant 20% increase, rising from Rs 215 crore in FY 2023-24 to Rs 258 crore in FY 2024-25. This growth reflects PFC’s expanding capacity and dedication to social causes, further bolstering its position as a responsible corporate citizen. On a cumulative basis, PFC has sanctioned Rs 1,966 crore and disbursed Rs 1,683 crore towards CSR initiatives to date, highlighting its sustained long-term engagement. Beyond direct CSR projects, PFC plays a critical role as the Nodal Agency for government programs like the Revamped Distribution Sector Scheme (RDSS). For its operationalisation and implementation efforts under RDSS, PFC earned a nodal agency fee of Rs 51.19 crore in FY 2024-25. This financial strength is evident in PFC’s overall performance, reporting a standalone Profit After Tax (PAT) of Rs 17,352.19 crore and a consolidated PAT of Rs 30,514 crore for FY 2024-25, underscoring its ability to scale impact with purpose.

Compliance and Transparency in CSR Governance

Transparency and strong governance are cornerstones of PFC’s operations. The company maintains a dedicated CSR Committee, with Shri Naresh Dhanrajbhai Kella serving as its Chairman. The comprehensive CSR Policy is publicly available on PFC’s official website, ensuring clear communication and adherence to regulatory frameworks. Importantly, the report confirms that no capital assets were created or acquired through CSR funds in FY 2024-25, ensuring that resources were directed purely towards program implementation and community benefit. Furthermore, PFC proudly reported no complaints regarding its Fair Practices Code during FY 2024-25, a testament to its commitment to ethical dealings and customer satisfaction. This rigorous approach to governance extends to its broader Environmental, Social, and Governance (ESG) principles, which are deeply integrated into PFC’s strategy to foster a sustainable low-carbon economy and drive national growth.

Recognizing Excellence: Awards and Social Media Impact

PFC’s impactful CSR initiatives and commitment to sustainable practices have not gone unnoticed. In FY 2024-25, the corporation was honored with the “CSR Champion Award” at the Outlook Planet Sustainability Summit 2024 and the “Best Innovation in CSR Practices Award” by ASSOCHAM for adopting new technology for the social upliftment of Divyangjan. Additionally, PFC secured the second prize for the “Swachhta Pakhwada Award 2024”, recognizing its exemplary performance in nationwide cleanliness drives. These accolades underscore PFC’s dedication to making a tangible difference. The company effectively leverages its digital communication strategy, maintaining consistent engagement on platforms like Facebook, LinkedIn, and X (formerly Twitter) to amplify its CSR initiatives and foster public awareness around key themes such as energy conservation, Swachhta campaigns, smart energy usage, and public health. Under the leadership of Smt. Parminder Chopra, Chairman & Managing Director, PFC is not only focused on financial performance but also on spearheading the organization’s growth trajectory and strengthening its position as the premier lender financing India’s energy transition goals, with a significant increase in funding to clean energy projects.

A Future-Focused Approach to Sustainable Development

Power Finance Corporation’s FY 2024-25 CSR report paints a picture of a proactive and responsible institution deeply committed to India’s holistic development. While managing the complexities of multi-year projects, the clarity in reporting unspent funds demonstrates a high degree of transparency and accountability. Through strategic financial allocations, impactful on-ground initiatives, and a robust governance framework, PFC is not just powering India’s energy journey but also contributing significantly to its social fabric and sustainable future. As the nation progresses towards its ambitious Net-Zero emissions targets by 2070, PFC’s integrated approach to finance and social responsibility will remain crucial in building a brighter, more sustainable future for generations to come.

(India CSR)

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