Powering Up: Under Parminder Chopra’s able leadership, PFC has grown and grown

For those in India’s power sector, it is a once-in-a-lifetime moment. The transformation from conventional power to sustainable and green power is an idea whose time has come.

Occupying a pivotal position in this landscape is Parminder Chopra, Chairman and Managing Director of Power Finance Corporation (PFC), the public sector undertaking financing India’s power transition. “It requires building technical knowhow to keep up with sectoral developments, in addition to strategic resource mobilisation, to be able to lend at competitive interest rates,” says Chopra, who moved into the corner office in August 2023.

In terms of numbers, in FY25, PFC reported a total income of over Rs1.06 lakh crore with a net profit of Rs 30,514 crore. That performance propelled Chopra to the top of the BT Most Powerful Women in Business list.

A qualified cost and management accountant, Chopra was earlier PFC Director (Finance). With a cumulative experience of around four decades, she has witnessed “a steady evolution of the power and financial sector,” which has helped her understand industry dynamics. “There is the learning on the importance of being adaptable. This sector requires continuous understanding and agile decision-making, since meeting India’s energy demands is critical for development,” she says.

PFC is an infrastructure finance company that primarily funds projects in the domestic power sector. Its reach cuts across generation, distribution, transmission, plant renovation and maintenance.

“The current phase is exciting for PFC and the sector due to a rapidly changing business environment. In the last few years, we have seen many changes in technology, industry and regulatory framework,” she says. In the process, she has had to deal with multiple stakeholders—borrowers, banks, investors, analysts, regulators and the government.

Over time, the company has diversified into non-power infrastructure projects. According to her, this covers ports, roads and new areas such as green hydrogen and bioethanol. “We have emerged as the country’s largest renewable financier with over Rs 84,000 crore renewable portfolio,” she says.

Running a tight operation comes easily to Chopra. “Our net NPA (non-performing assets) is at its lowest in over a decade with successful resolution of stressed projects. It had moved from near zero in FY10 to over 4% around FY18 but has now improved to 0.3%,” Chopra says.

Understandably, a lot of her resilience comes from facing a tough set of challenges. “We had to sustain operations during the pandemic and also while handling large schemes such as liquidity infusion under Atmanirbhar Bharat,” says Chopra. The guiding principles of policy and regulation are ensuring efficient, reliable and equitable distribution of electricity, she says. “These aim to promote transparency.”

Among her many achievements as PFC’s boss has been the fact that it became the first government-owned NBFC to set up a foreign subsidiary in GIFT City.

As a woman professional, Chopra has had to face several issues.

“Women may face unconscious gender biases and stereotypes. Sometimes, we may need to work harder,” she says. While acknowledging that challenges exist for both genders, she says women often face greater expectations and responsibilities outside work, including caregiving duties.

A lot has changed since Chopra entered the workforce, and it makes her happy that women are now well-represented in industries across senior positions. She is optimistic about the next generation of women. Her advice: “Set clear goals. Define your objectives and create a plan to achieve them.”

@krishnagopalan