More Stories

Informist, Sunday, Feb. 1, 2026

--BUDGET: Propose to restructure PFC, REC 

--BUDGET: Propose to restructure PFC, REC as part of public NFBC reform 

MUMBAI – With an aim to achieve scale and efficiency in public sector non-banking financial companies, the government has proposed to restructure Power Finance Corp. Ltd. and REC Ltd., according to the Union Budget for 2026-27 (Apr-Mar) presented by Finance Minister Nirmala Sitharaman in the Lok Sabha Sunday. This comes at a time when both firms are an important part of the country's energy security and energy transition journey.

Administrated by the Ministry of Power, PFC is a key institution that finances projects related to the power sector and holds 20% market share. 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 under the administrative control of 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, information technology communication. In 2019, PFC acquired 52.6% stake in REC and the convergence was to facilitate better financial aid to the power sector in India. 

At 1429 IST, shares of PFC were trading 1.5% higher at INR 385.05 on the National Stock Exchange and those of REC were 0.6% higher at INR 366.10. For the September quarter, PFC reported a net profit of INR 44.62 billion on a revenue of INR 147.56 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 Gopika Balasubramanium

Edited by Deepshikha Bhardwaj

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2026. All rights reserved.