President of India approves REC merger with Power Finance Corporation
Business
After just over seven years, the president of India has officially approved the merger of REC Ltd with Power Finance Corporation (PFC).
With the Ministry of Power conveying the President of India's approval on June 10, 2026, PFC will now take over all REC's assets and liabilities once the merger is made effective, meaning REC as a company will no longer exist once the merger is made effective.
PFC paid ₹14500cr for REC stake
Back in 2019, PFC bought a majority stake in REC for ₹14,500 crore.
This merger is expected to make it easier to restructure PFC and REC in order to achieve scale and improve efficiency in the Public Sector NBFCs.
The government sees this as a step toward restructuring PFC and REC to achieve scale and improve efficiency in the Public Sector NBFCs.