PFC, REC boards approve merger: What it means for India
Power Finance Corp. (PFC) and REC Ltd. received in-principle approval from their boards to merge, which would make them the biggest name in financing India's electricity projects once the merger is completed and after obtaining required statutory and regulatory approvals.
The boards gave the green light on Saturday, February 14, 2026, and the move follows years of PFC holding a major stake in REC.
More muscle to fund big ideas
With this merger, they're set to pump more money into everything from traditional power plants to renewables and new tech like green hydrogen.
Their combined loan book is expected to be over ₹17 lakh crore once the merger is completed, giving them more muscle to fund big ideas—plus, it aligns with India's Viksit Bharat 2047 objective and the broader energy transition.
For anyone interested in where India's energy (and climate action) is headed, this is a big deal.
Expect more cash flowing into India's huge power sector
The merger means less internal competition and better pricing power—basically, they can offer smarter deals and support bigger projects.
With ₹5.5 trillion in bonds on the table (about 10% of the local market), expect more cash flowing into India's huge power sector right when it needs it most.