New Delhi: Power Finance Corporation (PFC) has informed stock exchanges that three of its wholly owned subsidiary companies have been struck off and dissolved by the Registrar of Companies (RoC) with effect from June 1, 2026.
The subsidiaries that have ceased to exist are Deoghar Infra Limited, Deoghar Mega Power Limited, and Jharkhand Infrapower Limited. The move follows approval granted by the Ministry of Power and forms part of PFC’s broader strategy to streamline its corporate structure and optimise its subsidiary portfolio.
Three Subsidiaries Officially Dissolved
In a regulatory filing, PFC stated that the Registrar of Companies has approved the striking off and dissolution of the three wholly owned subsidiaries with effect from June 1, 2026.
The entities were incorporated as Special Purpose Vehicles (SPVs) under the provisions of the Companies Act, 1956 and were fully owned by the state-owned power sector financing major.
The dissolved companies are:
- Deoghar Infra Limited
- Deoghar Mega Power Limited
- Jharkhand Infrapower Limited
Following the RoC approval, these entities have formally ceased to exist as corporate bodies.
Read also: PFC Appoints V. Packirisamy as Director (Commercial) to Boost Power Sector Financing and Growth
Ministry of Power Approved Closure in 2025
The closure process was initiated after the Ministry of Power granted approval for striking off the companies on November 27, 2025.
Subsequently, PFC completed the necessary statutory and regulatory filings with the Ministry of Corporate Affairs (MCA) to facilitate the closure process.
After reviewing the submissions, the MCA approved the dissolution, leading to the formal striking off of the companies from official records effective June 1, 2026.
Special Purpose Vehicles Were Non-Material Subsidiaries
According to the company, all three entities functioned as Special Purpose Vehicles (SPVs) and were not classified as material subsidiaries under applicable regulatory norms.
As a result, the dissolution is not expected to have any significant impact on the financial performance, operational activities or business strategy of Power Finance Corporation.
The company clarified that the closure is largely an administrative and structural exercise aimed at rationalising its corporate framework.
Part of Corporate Streamlining Initiative
The dissolution aligns with PFC’s ongoing efforts to simplify its organisational structure and optimise management of its subsidiary network.
Public sector enterprises and large corporations periodically review dormant, inactive or non-core subsidiaries to improve operational efficiency, reduce compliance burdens and enhance corporate governance.
By winding up entities that are no longer strategically relevant, companies can focus resources more effectively on core operations and growth initiatives.
No Material Impact on PFC Operations
PFC has indicated that the closure of the three SPVs will not materially affect the corporation’s business operations or financial position.
Since the subsidiaries were non-material entities, their dissolution is expected to have minimal impact on the company’s consolidated financials and ongoing projects.
The development therefore represents a corporate restructuring measure rather than a business or operational change.
About Power Finance Corporation
Power Finance Corporation is one of India’s leading public sector financial institutions focused on the power and infrastructure sectors. The company plays a key role in financing generation, transmission and distribution projects across the country.
Over the years, PFC has expanded its presence in infrastructure financing while maintaining a portfolio of subsidiaries and special purpose vehicles established for various sector-specific initiatives.
The latest move reflects the corporation’s continued focus on improving efficiency and maintaining an optimal corporate structure aligned with its long-term strategic objectives.
Read also: PFC Transfers Two SPVs to Power Grid and Resonia for Over ₹36 Crore in Transmission Project Deals
