Merger of REC with Power Finance Corporation gets Presidential approval

The President approved the merger of REC Ltd with Power Finance Corporation, nearly seven years after PFC acquired the government’s majority stake in REC.

In March 2019, state-owned PFC completed the acquisition of the government’s 52.63 percent majority stake in REC Ltd. ₹14,500 crore.

According to a regulatory filing by REC, the Ministry of Power, through its letter dated June 10, 2026, has conveyed the approval of the Competent Authority (President of India) regarding the above mentioned proposal (merger of REC with PFC).

In the meeting held on May 16, the Board reserved the proposal to merge REC with PFC, pending approval of the proposal by the President of India.

REC agrees that, upon the merger being duly approved and brought into effect in accordance with applicable law, all assets and liabilities of REC will be transferred to PFC and REC will be subject to the provisions of Sections 230-232 of the Companies Act 2013. He said that it would be terminated in accordance with the provisions of its articles.

Finance Minister Nirmala Sitharaman had mentioned the merger of REC and PFC in her budget speech this year.

He said that to achieve scale and improve efficiency in Public Sector NBFCs, restructuring of Energy Finance Corporation and REC (erstwhile Rural Electrification Corporation) is proposed as a first step.