Had no power to interfere in day-to-day affairs of PFS: Chairman Rajib Kumar Mishra

PTC has been mired in controversy since January 2022, when three of the independent directors of its subsidiary PFS resigned citing corporate governance lapses.

PTC India Financial Services (PFS) Chairman Rajib Kumar Mishra said he had no involvement in the alleged corporate misgovernance in PFS, even as regulators continue to probe his role in the firm and possible irregularities in his appointment in the parent company PTC India Ltd (PTC). "I am just a nominee director of PFS. I do not have the power to interfere in the day-to-day affairs of PFS. This matter is nothing new, it has been going on for almost two years. It is being sensationalised now only because, maybe, some want to build a negative narrative for the company," Mishra told Moneycontrol on the sidelines of PTC India's 24th Annual Day event in New Delhi.

Also read: Exclusive | PFS Chairman Mishra did not act in shareholder interest: SEBI.

His comment comes after the capital market regulator Securities and Exchange Board of India (SEBI) issued a show-cause notice to Mishra and PFS managing director and chief executive officer Pawan Singh, where it held the two responsible for corporate governance failure given their roles in the board and management. Singh has been sent on leave after a Reserve Bank of India (RBI) direction.

Possible irregularities

Separately, SEBI is also looking into possible irregularities in the appointment of Mishra as the chairman and managing director (CMD) of PTC. Moneycontrol on July 13 reported that the PTC India Ltd. board has set up a sub-committee comprising three directors to look into alleged irregularities in the appointment of Mishra after SEBI questioned the process of his appointment for the top job.

Mishra did not comment on SEBI questioning him regarding the appointment. Moneycontrol had also exclusively reported on June 27 that SEBI had sent a letter to Mishra and the company secretary on June 22, asking about possible irregularities in the appointment, and about corporate governance issues in PTC and its subsidiary PFS.

PTC has been mired in controversy since January 2022, when three of the independent directors of PFS resigned citing corporate governance lapses. Like PFS, parent PTC also saw four of its six non-executive independent directors resign from the board in December 2022. The independent directors — Sushama Nath, Jayant Gokhale, Subhash S Mundra, and Preeti Saran — resigned raising concerns over governance issues and the “cavalier attitude” of the management towards independent directors.

Also read: Exclusive | Power ministry has not advised PSU promoters on PTC's regulatory scrutiny, says Secretary.

Talking to Moneycontrol, Mishra said PTC India has been performing well with a net profit of about Rs 507 crore. "PTC has been a performer. Our power trading volumes are also increasing and in the quarter that ended in June, it was about 16 percent higher. We are going to further diversify our portfolio with green hydrogen and energy storage. So, there are bigger things which PTC India is doing to improve India's power systems which I am focused upon," Mishra said.

PTC is well placed

Addressing the audience at the event on July 15, Mishra said the power trading landscape is undergoing transformation, and PTC India is ready to take on market risks and positions. "Our focus is increasingly directed towards the renewable energy sector, crafting innovative solutions for virtual contracts and acting as virtual power plants. We aim to provide round-the-clock power by blending renewable energy with thermal generation and/or storage solutions," he said.

Mishra said PTC India's vision, 24 years ago, was to provide innovative power trading solutions for the evolving sector. "Innovation has been our driving force. We leverage advanced data analytics to optimise operations and offer the best solutions. We have launched India's third power exchange, Hindustan Power Exchange (HPX), which has gained significant traction within 12 months of operation," he said.

While Union power minister RK Singh, Union minister of state for power Krishan Pal Gurjar, and Secretary (power) Pankaj Agarwal did not come for the event, Central Electricity Authority chairperson Ghanshyam Prasad was present and he suggested that the company could transform the customer satisfaction segment of PTC to make it even better.

"PTC can be one of the leaders in designing new products in the energy markets as green hydrogen and RTC power gain traction. Maybe PTC can aggregate demand, and try to see what best price can be offered to any customer who wants to purchase green power from the Indian grid," Prasad said.