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HomeMarket NewsPFC clarifies on ₹307 crore exposure to Gensol Engineering; stock gains
Ratings agencies CARE and ICRA had cited falsification of documents from Gensol when they had downgraded the company's credit rating last month. PFC said in its statement that it did not issue the letters referred to by the agencies.
State-run Power Finance Corporation (PFC) Ltd. will be in focus on Wednesday, April 23, after the company disclosed its exposure to controversy-hit Gensol Engineering, which is yet to be repaid.
In a statement on Tuesday evening, PFC mentioned that ₹307 crore out of the ₹352 crore that it had disbursed to Gensol Engineering for leasing Electric Vehicles in 2023, remains unpaid.
The company is actively pursuing options to address the situation and has also filed a complaint with the economic offences wing of the police regarding falsification of documents.
PFC had sanctioned ₹633 crore to Gensol Engineering in January 2023 for the procurement of 6,000 electric vehicles or ₹587 crore to purchase 5,000 electric four-wheelers for BluSmart Mobility's ride-hailing service and ₹46 crore to procure 1,000 electric three-wheelers for its cargo operations. However, the three-wheeler loan was not availed, according to PFC.
Repayments on the amount disbursed to Gensol had commenced with ₹45 crore returned, leaving a principal outstanding of ₹307 crore as of April 18, 2025. "Until January 31, 2025, Gensol was servicing its dues regularly," PFC said, adding that in the fourth quarter, the company had to invoke the Debt Service Reserve Account (DSRA) to clear dues in February and March.
Ratings agencies CARE and ICRA had cited falsification of documents from Gensol when they had downgraded the company's credit rating last month. PFC said in its statement that it did not issue the letters referred to by the agencies.
"Considering these red flags, the matter is under investigation internally in PFC under PFC's Anti-Fraud Policy. Furthermore, PFC has filed a complaint with the Economic Offences Wing (EoW) concerning the issuance of falsified documents," the statement added.
PFC is committed to safeguarding its interests and ensuring the recovery of its loan while upholding transparency in its operations, the PSU added.
Shares of PFC ended 0.5% higher on Tuesday at ₹438.25, still below its 52-week high of ₹580.
First Published:
Apr 23, 2025 8:33 AM
IST
