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REC-PFC Consolidation
June 17 , 2026
14 hrs 0 min
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- President Droupadi Murmu approved the merger of REC Limited with Power Finance Corporation (PFC) to create a larger power sector financing institution.
- In 2019, PFC acquired the Government of India's 52.63% stake in REC for ₹14,500 crore.
- After the merger, all assets, liabilities, rights and obligations of REC will be transferred to PFC, and REC will cease to exist as a separate legal entity under Sections 230-232 of the Companies Act, 2013.
- The merger was announced as part of the Union Budget 2026-27 to improve the scale and efficiency of public sector Non-Banking Financial Companies (NBFCs).
- Power Finance Corporation was incorporated on 16 July 1986, functions under the Ministry of Power, and received Maharatna status in October 2021.
- The Reserve Bank of India (RBI) classified PFC as an Infrastructure Finance Company (IFC) on 28 July 2010.
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