The corporation's board will soon amend its memorandum of association to do away with the clause seeking presidential approval, as required by PSUs for tapping the market, he said.

The Reserve Bank of India has also exempt the corporation from `prudential norms applicable to non-banking financial institutions' relating to their capacity to borrow, and liquidity till June 2000, he said.

``This is as good as giving the corporation a financial status and the much needed flexibility to operate,'' he said. The corporation, which posted a profit of Rs 574 crore last year, had targeted to mobilise a hefty Rs 1,850 crore from internal and external markets during the current financial year.

The corporation was the first to successfully raise $100 million external commercial borrowings immediately after the Pokharan tests. Power secretary VK Pandit wrote to Kohli on Wednesday stating that PFC had been given full operational freedom in terms of raising resources and on its lending programmes.

``The decision to tap the bond markets and debentures can be taken by the PFC board and we do not have to go to the government from time to time,'' Kohli explained.

The corporation has so far raised Rs 650 crore from the market, including $100 million from Europe.

Kohli said the operational freedom given to the corporation was in accordance with one of the recommendations made by the Narasimhan Committee on restructuring of PFC.

On the other hand, corporation had also sought exemption from RBI regulations on NBFC to give it the same freedom as enjoyed by financial institutions like Industrial Development Bank of India, Industrial Finance Corporation of India and others.

IDBI and IFCI can go to market any time. We wanted the same freedom, he added.

Granting of exemption by RBI has enhanced the borrowing capacity of the corporation and it would not have to limit itself to debt:equity ratio norms of 2:1, Kohli said.

The corporation with debt:equity ratio of 2.5:1, is expected to hit the market in November for mopping up about Rs 500 crore through the public bonds.