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Informist, Friday, Feb. 6, 2026

 

--PFC board OKs merger of REC with company 

 

MUMBAI – The board of Power Finance Corp. Ltd. Friday approved the company's merger with REC Ltd., first announced by Finance Minister Nirmala Sitharaman in the Union Budget for 2026-27 (Apr-Mar) on Sunday    .

"The Board of Directors of PFC took note of the Budget announcement and accorded its in-principle approval for restructuring in the form of a merger of PFC and REC, while ensuring that, post-merger, PFC continues to remain as a "Government Company" under the Companies Act, 2013 and other applicable laws," the company said in an exchange filing.

 

The government's plan to restructure PFC and REC aims to streamline the two non-banking finance companies to achieve scale and improve their efficiency, Sitharaman told the media at the post-Budget briefing Sunday.

 

PFC in FY19 acquired 52.63% stake in REC from the government for INR 145 billion as part of the government's divestment initiative, which has slowed down in the last three years.

 

Administrated by the Ministry of Power, PFC is a key institution that finances projects related to the power sector and holds 20% market share in the sector. The Maharatna company is designated as a nodal agency for revamped distribution sector scheme and ultra mega power projects, and bid process coordinator for independent transmission projects, according to the company's website. 

 

REC, a Maharatna company which is also under the Ministry of Power, finances power sector projects involved in generation, transmission, distribution, renewable energy, and new technologies. The state-owned company is the nodal agency for the revamped distribution sector scheme, as per the company's website. Recently, it has also diversified into the non-power infrastructure sector comprising roads and highways, metro rail, airports, ports, and information technology communication.

 

Shares of PFC Friday ended 1% higher at INR 419.20 on the National Stock Exchange and those of REC ended 1.3% lower at INR 372.50. For the December quarter, PFC reported a net profit of INR 47.63 billion on a revenue of INR 146.56 billion. REC reported a net profit of INR 40.43 billion for the December quarter and the total income came in at INR 149.11 billion.  End

 

Reported by Shubham Rana

Edited by Tanima Banerjee

 

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